The president of the Federal Reserve (Fed), Jerome Powell, he vowed to “prevent further inflation from taking hold” in remarks prepared for a congressional hearing on Tuesday, where the high pace of price increases is likely to be a central theme.
Powell did not explicitly mention the central bank’s plans to raise interest rates in brief opening remarks to his nomination hearing before the Senate Banking Committee for a second four-year term as Fed chief.
But he noted that the force of an ongoing recovery had pushed supply and demand for goods and services out of line, with consequent higher prices.
“The economy has strengthened rapidly despite the pandemic, leading to persistent supply and demand imbalances and bottlenecks and thus high inflation,” Powell said in his remarks, that they were released by the Fed on Monday. “We know that high inflation takes its toll.”
President Joe Biden has nominated Powell for a new term as Fed chairman, but the appointment must be ratified by the Senate.
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