Why Fed's Powell still thinks high inflation is 'temporary'

A screen shows Federal Reserve Chair Jerome Powell speak as a trader works inside a post on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., August 27, 2021. - Reuters

WASHINGTON: Federal Reserve Chair Jerome Powell on Friday pushed back against concerns that swiftly rising prices could become an enduring feature of the economy, forcing the U.S. central bank to raise interest rates and cut short the recovery.

While recent inflation readings are "a cause for concern," Powell told the Kansas City Fed's annual Jackson Hole economic symposium, responding to what he sees as likely to be a temporary trend by tightening monetary policy could be a "particularly harmful" mistake.