Powell: Inflation Will Likely Remain Elevated Before Fading This Year

The Federal Reserve chair told lawmakers that high inflation over recent months is driven largely by temporary factors.

Federal Reserve Chair Jerome Powell said Wednesday that inflation, which has been surging as the recovery strengthens, "will likely remain elevated in coming months" before "moderating." At the same time, Powell signaled no imminent change in the Fed's ultra-low-interest rate policies. Testifying to the House Financial Services Committee, Powell reiterated his long-held view that high inflation readings over the past several months have been driven largely by temporary factors, notably supply shortages and rising consumer demand as pandemic-related business restrictions are lifted.