UPDATED 12:38 PM PT – Thursday, July 15, 2021
Federal Reserve Chair Jerome Powell has said inflation will remain elevated before moderating in the coming months. Powell made the comment on Wednesday while presenting the Fed’s semi-annual monetary policy report to the House Financial Services Committee.
This comes as inflation has surged every month since Joe Biden took office. The central bank chief noted economic improvements, but said the labor market was still below pre-pandemic levels.
— BLS-Labor Statistics (@BLS_gov) July 15, 2021
“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,” said Powell.
Powell’s comments come as U.S. consumer prices in June grew at the fastest pace seen in 13 years. He added the economy needs to improve more before the central bank changes its monetary policy.