Fed to react if inflation becomes serious concern - Fed's Powell

EPA-EFE/MICHAEL REYNOLDS

The Federal Reserve will increase interest rates "if sustained higher inflation were to become a serious concern," prepared remarks by Fed's Chair Jerome Powell (pictured) read on Monday.

According to the remarks, Powell, who is scheduled to testify before the United States Senate's Banking Committee on Tuesday, will warn of longer-than-expected disruptions caused by supply-chain bottlenecks.

Despite the trend, the impact of the disruption on economic recovery "will abate," bringing inflation back towards Fed's goal of 2%, he underlined, similar to his previous remarks made after Fed's monetary policy meeting.

Baha Breaking News (BBN) / BU