Fed: US Inflation May Rise A Little Higher

In a recent published letter from the Fed Chair to Senator Rick Scott, Jerome Powell said the overheating U.S. economy is going to temporarily see “a little higher” inflation this year as supply constraints push up prices in some sectors, but the Federal Reserve is committed to keeping any overshoot within limits.

“We do not seek inflation that substantially exceeds 2 percent, nor do we seek inflation above 2 percent for a prolonged period,”, Said Powell in his replied letter, “I would emphasize, though, that we are fully committed to both legs of our dual mandate – maximum employment and stable prices.”