MNI BRIEF: Powell Says Fed Can't Ease Supply Constraints

Federal Reserve Chair Jerome Powell said Wednesday most inflation pressures are driven by pandemic-related disruptions and should subside, changes that will be led by the real economy rather than monetary policy.

"Our tools cannot ease supply constraints. We continue to believe our dynamic economy will adjust to the supply and demand imbalances and that as it does, inflation will decline to levels much closer to our 2% longer run goal," he said. Powell also said he can be patient with rate increases and maximum employment could be restored in the second half of next year.

"Global supply chains are complex. They will return to normal function, but the timing of that is highly uncertain."