Federal Reserve Chair Jerome Powell testifies during a House Financial Services Committee hearing on Dec.

Powell appeared before the Senate Banking Committee on Tuesday and argued the U.S.

Federal Reserve Chair Jerome Powell testifies during a House Financial Services Committee hearing on Dec.

Powell appeared before the Senate Banking Committee on Tuesday and argued the U.S.

Federal Reserve Chairman Jerome Powell warned on Tuesday the United States has a "long way" to go to return to full employment, even as he expressed cautious optimism that the economy will recover from the pandemic this year.

At the same time, Powell avoided commenting on the level of federal support needed for the economy as Congress prepares to vote on President Biden's $1.9 trillion dollar rescue package for families and businesses battered by the coronavirus downturn.

In testimony before the Senate Banking Committee, Powell also pushed back against concerns that inflation will become a threat, as Republicans – and even some Democrats - warn that Biden's plan is excessive and could overheat the U.S.

"The economy is a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved," Powell said.