Federal Reserve Chair Jerome Powell said consumers will see higher prices in the coming months, but those will stabilize or drop as short-term problems in the supply chain resolve themselves, the Associated Press reports.
Powell noted that the current inflation is due to the economy springing back from a historic slow down during the coronavirus pandemic. He also pointed out that the bulk of price increases came from product categories related to the country reopening. Because the price increases were based on temporary factors, Powell said the Fed would not be taking any action.
“By inflation, we mean year after year after year prices go up,” Powell said. “If something is a one-time price increase… you wouldn’t react to something that is likely to go away. We really do believe that these things will come down of their own accord.”