Powell Says Inflation, Though Elevated, Will Likely Moderate

Federal Reserve Board chairman Jerome Powell testifies on the Federal Reserve's response to the coronavirus pandemic during a hearing on Capitol Hill in Washington, on June 22, 2021. Graeme Jennings/Pool via AP

WASHINGTON—Federal Reserve Chair Jerome Powell suggested Wednesday that inflation, which has been surging as the recovery strengthens, “will likely remain elevated in coming months“ before “moderating.”

At the same time, Powell signaled no imminent change in the Fed’s ultra-low-interest rate policies.