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The US economy faces an "uncertain" global environment and could face further inflation "surprises," Federal Reserve Chair Jerome Powell said Wednesday.

"Inflation has obviously surprised to the upside over the past year, and further surprises could be in store," Powell said in his semi-annual testimony to Congress.

He once again stressed that the Fed is committed to bringing down inflation -- which has reached a 40-year high -- with higher interest rates, but said the world's largest economy "is very strong and well positioned to handle tighter monetary policy."