Powell says that they are fighting inflation better than expected

Federal Reserve Chair Jerome Powell said on Friday that the central bank is still committed to raising interest rates until inflation comes down, but that it is also aware of the risks to the economy.

"We are strongly committed to returning inflation to our 2% objective," Powell said during a panel discussion at the Thomas Laubach Research Conference in Washington, D.C. "We understand that high inflation imposes significant hardship, especially on those least able to afford the higher costs of essentials like food, housing, and transportation."

Speaking of inflation, Trueflation an independent economic data research firm pointed out that current U.S inflation YTD(Year today) is actually getting really close to the 2% target. This might signal that priors the interest rates hikes have been successful in curbing inflation.

Powell said that the Fed has raised interest rates by 75 basis points so far this year and that it is likely to continue raising rates in the coming months. However, he also said that the Fed is "mindful of the risks" to the economy, including the possibility of a recession.

"We will take the necessary steps to bring inflation down, but we will also be mindful of the risks to the economy," Powell said. "We will proceed carefully and methodically."

Powell's comments came as the U.S. economy is facing a number of challenges, including high inflation, rising interest rates, and a potential recession. The Fed is trying to balance the need to bring down inflation with the need to avoid a recession. In the past months, the collapse of banks like SVB, FBR, and other small regional banks has fuelled the fear of a new 2008 all over again.

It remains to be seen how successful the Fed will be in achieving this delicate balancing act.