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The Federal Reserve admitted Wednesday that inflation could increase quicker and for longer than the central bank has projected in recent months.
Inflation could turn out to be “higher and more persistent” than previously expected if supply constraints continue to plague many economic sectors as they are now, Federal Reserve Board Chairman Jerome Powell said during a press conference Wednesday. Fed officials including Powell have repeatedly stated that consumer price increases would be “transitory,” lasting 6-9 months, according to Forbes.
“Inflation has increased notably and will likely remain elevated in coming months before moderating,” Powell said during the press conference.
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