Jerome Powell, the chairman of the Federal Reserve, says inflation "will certainly continue elevated in coming months" before "moderating," implying that price increases have been greater and more persistent than many economists predicted. Powell maintained his long-held belief that rising inflation is bad for the economy in written testimony to the House Financial Services Committee on Wednesday at noon. Powell, on the other hand, did not repeat a remark he made just three weeks earlier before another House panel, that inflation would drop back to the Fed's target of 2% when the forces that drove prices higher receded. Much of the gain was driven by categories clearly affected by the reopening of the economy and related supply shortages, with used car price increases accounting for about one-third of the jump. Prices for hotel rooms, airline tickets, and car rentals also rose substantially. The fact that the recent run-up in inflation has been dominated by a few categories should give the Fed leadership continued confidence in their view that it is mostly a transitory increase, a view which the market apparently shares, But some increases could persist. Restaurant prices rose 0.7% in June, the largest monthly rise since 1981, and have increased 4.2% compared with a year ago. Those price increases likely are intended to offset higher wage and food costs as restaurants scramble to fill jobs. In his testimony, Powell was upbeat about the economy, with growth on track to post its fastest rate of increase in decades. He said hiring has been robust" but noted there is still a long way to go, with the unemployment rate elevated at 5.9%. That indicates that Powell supports continuing the Fed's low-interest rate policies. The Fed has said it will keep its short-term interest rate pegged at nearly zero until maximum employment has been reached and inflation is at 2% and on track to moderately exceed that pace for some time. Restaurant prices rose 0.7% in June, the largest monthly rise since 1981, and have increased 4.2% compared with a year ago. Those price increases likely are intended to offset higher wage and food costs as restaurants scramble to fill jobs. In his testimony, Powell was upbeat about the economy, with growth on track to post its fastest rate of increase in decades. He said hiring has been robust" but noted there is still a long way to go, with the unemployment rate elevated at 5.9%. That indicates that Powell supports continuing the Fed's low-interest rate policies. The Fed has said it will keep its short-term interest rate pegged at nearly zero until maximum employment has been reached and inflation is at 2% and on track to moderately exceed that pace for some time. Restaurant prices rose 0.7% in June, the largest monthly rise since 1981, and have increased 4.2% compared with a year ago. That indicates that Powell supports continuing the Fed's low-interest rate policies. The Fed has said it will keep its short-term interest rate pegged at nearly zero until maximum employment has been reached and inflation is at 2% and on track to moderately exceed that pace for some time. Brief the Remarks of the Powell comments overthere