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Powell sees a “steady improvement” in the economy and a notable acceleration in inflation

WASHINGTON, Jun 21 (Reuters) – The US economy continues to show a “sustained improvement” in the impact of the coronavirus pandemic and the labor market continues to post gains, but inflation has “accelerated notably in recent months,” it will say. Federal Reserve Chairman Jerome Powell, according to testimony prepared for a congressional hearing.

Powell did not elaborate in his prepared remarks on current monetary policy for Tuesday’s hearing, or on the possibility that the US central bank may have to accelerate its plans to withdraw some aid to the economy due to the faster rise in prices. .

In his comments, which were released by the Fed late Monday afternoon, Powell said he believes the current jump in inflation is likely to fade.

He also reaffirmed his concern that the recovery remains uneven, as joblessness continues to hit lower-wage workers, blacks and Hispanics the hardest.

“We at the Federal Reserve will do everything we can to support the economy for as long as it takes to complete the recovery,” Powell said.

Powell is scheduled to testify Tuesday before the U.S. House of Representatives Select Subcommittee on the coronavirus crisis.

In his remarks, Powell said he believed employment “should rebound in the coming months” as vaccination against COVID-19 continues and the economy reopens.

Still, “the pandemic continues to pose risks,” he added.

(Reporting by Howard Schneider; Edited in Spanish by Javier López de Lérida)

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