Powell says Fed to use all tools against high inflation
Inflation ‘clearly related to pandemic related factors’, ‘linger well into next year,’ Fed chair says
US Federal Reserve Chair Jerome Powell said Wednesday the central bank is ready to use all of its tools against high inflation.
The risks of high inflation have "clearly risen" and the Fed's monetary policy would adapt accordingly, Powell said during testimony before the House of Representatives Financial Services Committee.
The Fed chair said inflation pressures would "linger well into next year," but added he expects a decline in the second half of 2022.
Powell rehashed comments made Tuesday before the Senate Banking Committee that the bank would discuss winding up its asset purchases at a faster rate at its next meeting later this month.
He also reiterated that he would stop using "transitory" to describe inflation.
"Inflation that we are seeing is still clearly related to pandemic related factors," he said. "It has spread more broadly in the economy."