WASHINGTON, D.C.: US Federal Reserve Chairman Jerome Powell said on Monday (Tuesday in Manila) the central bank will use its tools to prevent higher inflation from becoming entrenched while supporting the economic recovery.

'The economy has rapidly gained strength despite the ongoing pandemic, giving rise to persistent supply and demand imbalances and bottlenecks, and thus to elevated inflation,' Powell said in a written testimony prepared for delivery at his confirmation hearing before the Senate Banking Committee on Tuesday.