Fed Chair Jerome Powell said Fed is “on track” to start tapering the asset purchases. “Supply constraints and elevated inflation are likely to last longer than previously expected and well into next year, and the same is true for pressure on wages,” he added. “Of we were to see a risk of inflation moving persistently higher, we would certainly use our tools.”
Separately, San Francisco Fed President Mary Daly said recent “eye-popping” inflation will subside with the pandemic. The decision on not raising interest rate is appropriate. “Just because we are standing pat, being patient, is not the same as being asleep,” Daly said.