Federal Reserve Chairman Jerome Powell Predicts Recent Price Spikes Will Subside Soon
Powell made his forecast in written testimony for a congressional oversight hearing Tuesday. He said the price increase in May, the largest in 13 years, appears to be extreme compared to last spring’s prices that dropped due to the COVID-19 pandemic. “As these transitory supply effects abate, inflation is expected to drop back toward our longer-run goal,” Powell said in his testimony. However, St. Louis Fed President James Bullard said on Monday inflation “could go higher,” than the 2....