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7/28, 8:36 PM (Source: TeleTrader)
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Inflation expected to remain considerably elevated - Powell

Head of the Federal Reserve Jerome Powell said on Wednesday that inflation has increased "notably" and is seen staying elevated in the upcoming months.

Much of the increase in prices can be contributed to the supply bottlenecks which are limiting how quickly production can respond to increased spending, the official noted. He warned that bottlenecks, hiring difficulties, and other constraints could cause inflation to go higher and stay there longer than expected.

However, indicators of long-term inflation expectations remain broadly consistent with the Fed's goal of 2%, Powell added, stating that the central bank will adjust its policies if those expectations move "materially and persistently" beyond the 2%.

Breaking the News / MD