Powell to Senate: Reopening economic bottlenecks could be more enduring

Fed chair Jerome Powell will say in remarks prepared for delivery before 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”, as reported by Reuters.
Powell is expected to say that higher prices, hiring troubles could be more enduring than anticipated. He will reiterate that he expects strong growth for rest of year despite risks from the coronavirus Delta variant.
Powell will stress that the Federal Reserve would act against sustained higher inflation.
Comments with regards to timings of a taper are still muted by Powell, but the market is 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.