Federal Reserve Chair Jerome Powell delivered a warning on the potential consequences of maintaining high interest rates for too long during a House Financial Services Committee hearing. Despite a strong economy and labor market, Powell emphasized the need to continue working towards the Fed's 2% inflation goal. He highlighted the risks of reducing policy restraint too late, which could harm economic activity and employment. The Fed's current overnight borrowing rate is at its highest level in 23 years, following 11 consecutive hikes. Market expectations suggest a rate cut in September, with the possibility of another before the year's end. However, FOMC members have only indicated one potential cut following their June meeting. Powell's remarks signal a cautious approach to monetary policy amid ongoing economic uncertainties.