The Federal Reserve, in its July Monetary Policy Report submitted to Congress on Friday, emphasized its commitment to achieving price stability.

The report noted that consumer price inflation indicators "rose steadily" in the second half of last year, affected by tariffs. This year, inflation has climbed further, influenced by higher energy prices due to the war in Iran.

It also pointed out that some other inflation measures, including the trimmed mean PCE which had been highlighted previously by Fed Chair Wash, have declined over the past year.

The Fed stated it is prepared to use all its policy tools to achieve the goals of maximum employment and price stability, particularly when the federal funds rate is constrained by its effective lower bound.

The report added that growth in U.S. labor productivity remains strong.