Reuters has reported that Fed chair Jerome Powell will say in remarks prepared for delivery to the Senate banking committee on Tuesday that "If sustained higher inflation were to become a serious concern, we would certainly respond and use our tools to ensure that inflation runs at levels that are consistent with our goal."
Key comments
Says higher prices, hiring troubles could be more enduring than anticipated.
Repeats expect strong growth for rest of year despite risks from the coronavirus delta variant.
Says Fed would act against "sustained" higher inflation.
Market implications
There have been no comments with regards to timings of a taper, but the market is well aware that this will come, potentially as soon as November's meeting so long as economic recovery progress is being made especially in the jobs sector.
