Fed Chair Powell: 'We understand the difficulties' of rising inflation

The nation’s top economic policymaker acknowledged that inflationary pressures are impacting everyday Americans, but doubled down on his view that the hot pace of price increases should abate in time.

"We understand the difficulties that high inflation poses for individuals and families, particularly those with limited means to absorb higher prices for essentials such as food and transportation,” Federal Reserve Chairman Jerome Powell said in a press conference Wednesday.

Americans have been feeling the impact of rising prices as of late. The Consumer Price Index showed prices rising 5.4% on a year-over-year basis in September (the fastest reading since 2008).

But Powell leaned again on the explanation of these pressures as “transitory,” pointing to pandemic-induced materials and labor shortages that have constrained supply chains globally.

Powell suggested his deference is to give workers and hiring firms more time to plug the shortfall.

Ideally we would see further development of the labor market in a context where there isn't another COVID spike, and then we would be able to see how does participation react in that post-COVID world,” Powell said.

Article excerpted from Yahoo.