Powell Warns Elevated Inflation Justifies Faster Reduction of Bond Purchases

Federal Reserve Chairman Jerome Powell said the central bank would consider accelerating the reduction of its asset purchases at its meeting in mid-December as it grapples with elevated inflation and concerns that the economy is overheating.

“The risk of higher inflation has increased,” Mr. Powell said at a hearing Tuesday morning before the Senate Banking Committee. He appeared alongside Treasury Secretary Janet Yellen for the first of two days of hearings.