One day after a red-hot inflation reading, Federal Reserve Chair Jerome Powell is slated to tell Congress Wednesday that consumer prices have "increased notably" and are likely to "remain elevated" in coming months, marking a noticeable change in tune from his longtime insistence that recent inflation will only be transitory.
In prepared remarks, Powell says prices are appearing to rise quickly partly because they are recovering from the sharp pandemic-related price declines of last spring, as well as due to recent production bottlenecks and other supply constraints.
