Powell Says Inflation Risks Rising, but Fed Can Be ‘Patient’

Federal Reserve Chairman Jerome Powell testifies before the House Oversight And Government Reform Committee hearings on oversight of the Treasury Department's and Federal Reserve's Pandemic Response, on Capitol Hill in Washington, on Sept. 30, 2021. Al Drago/AFP via Getty Images

WASHINGTON—Federal Reserve Chair Jerome Powell said Friday that the tangled supply chains and shortages that have bedeviled the U.S. economy since this summer have gotten worse and will likely keep inflation elevated well into next year.

The Fed is not yet prepared to lift its benchmark interest rate, he said, though he suggested that the economy may be ready for a rate hike next year.