MNI BRIEF: Fed's Powell Says Supply Constraints Increase Risks

Federal Reserve Chair Jerome Powell said Friday he doesn't know how long it will take for inflation to abate as supply bottlenecks appear more persistent and will likely not clear up until will into next year, but his base case remains that inflation will fall going into next year.

He also reiterated that the Fed is on track to begin tapering this year, ending that process in mid-2022. But when asked about heightened inflation risks, Powell repeated that that the two sides of the central bank's dual mandate are "somewhat" in tension and said the Fed is in a good position to respond in various scenarios.

Powell added that "it would be premature" to raise the fed funds rate now.