Powell pledges to prevent inflation from developing deep roots

Powell pledges to prevent inflation from developing deep roots

Fed Chairman Jerome Powell is set to tell Congress Tuesday that the U.S. central bank will take steps to make sure higher inflation seen over the past year will not be allowed to develop deep roots in the economy.

“We will use our tools to support the economy and a strong labor market and to prevent higher inflation from becoming entrenched,” Powell will say, according to a copy of his prepared remarks to the Senate Banking Committee released Monday.

The panel is holding a hearing on President Joe Biden’s nomination of Powell for a second four-year term.

Powell has support from both sides of the aisle and experts think he will be confirmed. But Powell may face some criticism for the sharp spike in inflation over the last year. The Fed chairman stressed for months that inflation would prove transitory.

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