The head of the Federal Reserve reminded U.S. lawmakers Wednesday that the Fed operates under a dual mandate.

“We’re not just an inflation-targeting central bank,” Jerome Powell told the House Financial Services Committee, “we also have an employment mandate.”

Congress gave the Federal Reserve that dual mandate: keep prices stable and promote maximum employment.

Powell told the Senate Banking Committee on Tuesday that the Fed has made “considerable progress” in taming an inflation rate that had reached its highest point in 40 years.

As the country emerged from the pandemic, supply far outstripped demand and inflation soared around the world, hitting 9.1% in the U.S. Between 2022 and 2023, the Fed raised its benchmark rate 11 times, bringing inflation down to 3.3%.

Powell reminded the House Financial Services Committee on Wednesday that the Fed needed to be careful about reducing the interest rates until it gets a better handle on inflation.

Powell and other officials have said it would be better to cut interest rates when the inflation rate hits 2%, a target that the U.S. has been moving closer to. However, Powell has not said exactly when the interest rate cuts can be expected.

Powell told the House committee, though, that the Fed may not wait for inflation to reach 2%. Some economists have speculated the Fed may make a cut in September.

Meanwhile, the country’s unemployment rate stands at 4.1%, a number that some economists and federal officials do not feel represents sustainable full employment.

"There is a path to getting back to full price stability while keeping the unemployment rate low," Powell said Wednesday. "We're on it. We're very focused on staying on that path."