Powell Dismisses Near-Term Inflation Concerns

Senators asking multiple questions on the macro outlook, particularly on in inflation.

• Powell repeats cautiously optimistic language on the econ outlook and the view that any near-term burst of inflation would be short-lived (due to base effects, etc).
• Longer term disinflationary dynamics, he says, "don't change on a dime".
• He says he's unconcerned about in inflationary impact from an increase in spending this year (whether due to pent-up private savings being spent or fiscal support). And if there were unwanted inflation, the Fed has the tools to deal with it.
• All of this is largely in line w previous Powell comments on inflation dynamics, including at the January FOMC press conference.