Fed's Randal Quarles still sees inflationary pressures as 'transitory' (updated)

Federal Reserve Vice-Chairman Randal Quarles, echoing other recent comments by Fed officials, still sees inflationary pressures as "transitory," he said in testimony to the U.S. Senate Committee on Banking, Housing, and Urban Affairs."It remains my view and the general view of the Fed that these pressures are most likely to be transitory... If we're wrong — and we could be wrong — I think we have the tools" to deal with it before inflation becomes entrenched.Update at 10:47 AM ET: In his opening statement he repeated that banks are better capitalized than they were a year ago and have $100B more in loan loss reserves.He sees financial stability risk as moderate, he said during the testimony.Update at 11:00 AM ET: The Fed is working together in "a sprint" with its the Office of the Comptroller of the Currency and the FDIC to research and develop a regulatory framework for cryptocurrencies and