Powell says Fed policy will adapt amid risk of persistent inflation

Federal Reserve Chair Jerome Powell reinforced his message that the U.S. central bank would keep inflation in check and said for the second time in two days that officials should consider speeding up how quickly they withdraw policy support.

“We’ve seen inflation be more persistent. We’ve seen the factors that are causing higher inflation to be more persistent,” Powell told the House Financial Services Committee on Wednesday. “Policy has adapted to that and will continue to adapt.”

Powell echoed remarks he made on Tuesday to the Senate Banking Committee that it would be “appropriate” to discuss whether the central bank should wind up its asset purchases at a faster pace given heightened inflation risks.