In anticipation of Federal Reserve Chairman Jerome Powell's testimony before the Senate Banking Committee on Tuesday, Powell is expected to discuss lingering effects of inflation.
According to CNBC, Powell is also required to speak to the House Financial Services Committee on Wednesday. The remarks from his testimony are as follows:
"Inflation is elevated and will likely remain so in coming months before moderating," Powell states. "As the economy continues to reopen and spending rebounds, we are seeing upward pressure on prices, particularly due to supply bottlenecks in some sectors.
''These effects have been larger and longer lasting than anticipated, but they will abate, and as they do, inflation is expected to drop back toward our longer-run 2 percent goal."
Last week, the Fed mentioned it would pull back on stimulus funding it provided during the COVID-19 pandemic. "We at the Fed will do all we can to support the economy for as long as it takes to complete the recovery," Powell states.
Powell is also expected to address the concerns of retiring Dallas Fed President Robert Kaplan, who is involved in a stock trading controversy.
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