6/16, 8:46 PM (Source: TeleTrader)
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Inflation increased notably, will remain elevated - Powell

Chairman of the Federal Reserve Jerome Powell (pictured) said on Wednesday that inflation has increased "notably" and will "likely remain elevated" in the coming months before moderating.

He attributed the rise in inflation partly to "very low" readings from earlier in the pandemic that haven't been taken into account previously, as well as the increase in consumer energy prices. Additionally, limited production from supply bottlenecks have been "larger than anticipated," Powell noted.

These bottlenecks, alongside hiring difficulties and other constraints could continue to restrict how quickly supply can adjust, "raising the possibility that the inflation could remain high and more persistent" than the Fed expects, the official stated.

Breaking the News / MD