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Photo: Jerome Powell Jerome Powell, chairman of the U.S. Federal Reserve, during a Senate Banking, Housing, and Urban Affairs Committee hearing in Washington, D.C., on Sept. 28, 2021.

Federal Reserve Chair Jerome Powell is doubling down on the U.S. central bank’s new policy framework—saying he won’t entertain interest-rate increases until the labor market heals further, even though inflation could run hot for months.

“There is still ground to cover to reach maximum employment,” Powell told reporters Wednesday. “The inflation that we’re seeing is really not due to a tight labor market.”

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