Fed Chair Powell: "Factors pushing inflation upward will linger well into next year"

From Fed Chair Powell's prepared testimony: Coronavirus and CARES Act, Excerpt on inflation:


Most forecasters, including at the Fed, continue to expect that inflation will move down significantly over the next year as supply and demand imbalances abate. It is difficult to predict the persistence and effects of supply constraints, but it now appears that factors pushing inflation upward will linger well into next year. In addition, with the rapid improvement in the labor market, slack is diminishing, and wages are rising at a brisk pace.
emphasis added
And on the new COVID variant:
The recent rise in COVID-19 cases and the emergence of the Omicron variant pose downside risks to employment and economic activity and increased uncertainty for inflation. Greater concerns about the virus could reduce people's willingness to work in person, which would slow progress in the labor market and intensify supply-chain disruptions.
Powell will provide his testimony tomorrow at 10AM ET: Coronavirus and CARES Act, Before the U.S. Senate Committee on Banking, Housing, and Urban Affairs

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