Federal Reserve Chair Jerome Powell said the price increases seen in the economy recently are bigger than expected, but he reiterated that they will likely wane.

"A pretty substantial part, or perhaps all, of the overshoot in inflation comes from categories that are directly affected by the reopening of the economy, such as used cars and trucks," Powell said Tuesday in response to a question before the House Select Subcommittee on the Coronavirus Crisis. "Those are things that we would look to, to stop going up and ultimately to start to decline."

But the Fed chair acknowledged the uncertainty around that view: "I will say that these effects have been larger than we expected, and they may turn out to be more persistent than we expected."

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