Fed's Powell says risk of higher inflation has increased

Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell testify before a Senate Banking Committee hybrid hearing on oversight of the Treasury Department and the Federal Reserve on Capitol Hill in Washington
Federal Reserve Chair Jerome Powell testifies before a Senate Banking Committee hybrid hearing on oversight of the Treasury Department and the Federal Reserve on Capitol Hill in Washington, U.S., November 30, 2021. REUTERS/Elizabeth Frantz

Nov 30 (Reuters) - The higher prices seen today are generally related to the pandemic, but some price increases are also being seen more broadly and the risk of higher inflation has increased, Federal Reserve Chair Jerome Powell said on Tuesday.

"Generally, the higher prices we're seeing are related to the supply and demand imbalances that can be traced directly back to the pandemic and the reopening of the economy," Powell said during a hearing with the U.S. Senate Banking Committee. "But it's also the case that price increases have spread much more broadly ... and I think the risk of higher inflation has increased."

Reporting by Jonnelle Marte; Editing by Chizu Nomiyama

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