Powell Says Fed Will Adapt to Rising Inflation Risk

The video discusses the current state of wage growth, noting that while wages are increasing, they are not yet causing significant inflation concerns. The U.S. economic recovery is highlighted as the strongest among major economies, partly due to robust fiscal support. Inflation is still linked to pandemic-related factors but has spread more broadly, raising concerns about persistent inflation. The policy is adapting to these changes.

What are the risks associated with persistent higher inflation according to the speaker?

How has the policy adapted in response to the inflation risks mentioned?