US Inflation Likely To Remain Elevated In Coming Months Before Moderating - Fed's Powell

US Inflation Likely to Remain Elevated in Coming Months Before Moderating - Fed's Powell

WASHINGTON (UrduPoint News / Sputnik - 14th July, 2021) US inflation will likely remain elevated in the near term before moderating in the coming months, Federal Chairman Jerome� Powell said in prepared remarks to Congress on Wednesday.

"Inflation has increased notably and will likely remain elevated in coming months before moderating. Inflation is being temporarily boosted by base effects, as the sharp pandemic-related price declines from last spring drop out of the 12-month calculation," Powell said in prepared testimony on monetary policy.

"In addition, strong demand in sectors where production bottlenecks or other supply constraints have limited production has led to especially rapid price increases for some goods and services, which should partially reverse as the effects of the bottlenecks unwind."

The Fed chief added that prices for services that were hard hit by the pandemic have also jumped in recent months as demand for these services has surged with the reopening of the economy.

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