Economics
Powell Expects Bump in Inflation, Says It Won’t Get Out of Hand
- Says inflation won’t be particularly large or persistent
- Powell, Yellen appear before House Financial Services panel
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Federal Reserve Chairman Jerome Powell said prices would rise this year as the pandemic recedes and Americans are able to go out and spend, but he played down the risk that this would spur unwanted inflation.
“We do expect that inflation will move up over the course of this year,” Powell told the House Financial Services Committee on Tuesday, citing pent-up demand, supply-chain bottlenecks and the comparison with very weak price pressures last year. “Our best view is that the effect on inflation will be neither particularly large nor persistent.”