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Fed Chairman Jerome Powell retires the word 'transitory' in describing inflation
https://finance.yahoo.com/news/fed-...sitory-in-describing-inflation-162510896.html
The nation’s economic steward said it will back off of using the word “transitory” to describe the fast pace of price increases, as Federal Reserve policymakers acknowledge the increasing risk of more persistent inflation.
“We tend to use [the word transitory] to mean that it won’t leave a permanent mark in the form of higher inflation,” Fed Chairman Jerome Powell told Congress on Tuesday. “I think it’s probably a good time to retire that word and try to explain more clearly what we mean.”
.........The Fed may attempt to get ahead of inflation by more rapidly pulling back on its asset purchase program, a process it kicked off this month. The central bank hoped to fully end its open market purchases of mortgage-backed securities and U.S. Treasuries by the middle of next year, but Powell opened the door to accelerating that timeline on Tuesday.
“We now look at an economy that is very strong and inflationary pressures that are very high and that means it's appropriate for us to discuss at our next meeting — which is in a couple weeks — whether it would be appropriate to wrap up our purchases a few months early,” Powell said.
The Fed’s next policy-setting meeting is scheduled for Dec. 14 and 15.
https://finance.yahoo.com/news/fed-...sitory-in-describing-inflation-162510896.html
The nation’s economic steward said it will back off of using the word “transitory” to describe the fast pace of price increases, as Federal Reserve policymakers acknowledge the increasing risk of more persistent inflation.
“We tend to use [the word transitory] to mean that it won’t leave a permanent mark in the form of higher inflation,” Fed Chairman Jerome Powell told Congress on Tuesday. “I think it’s probably a good time to retire that word and try to explain more clearly what we mean.”
.........The Fed may attempt to get ahead of inflation by more rapidly pulling back on its asset purchase program, a process it kicked off this month. The central bank hoped to fully end its open market purchases of mortgage-backed securities and U.S. Treasuries by the middle of next year, but Powell opened the door to accelerating that timeline on Tuesday.
“We now look at an economy that is very strong and inflationary pressures that are very high and that means it's appropriate for us to discuss at our next meeting — which is in a couple weeks — whether it would be appropriate to wrap up our purchases a few months early,” Powell said.
The Fed’s next policy-setting meeting is scheduled for Dec. 14 and 15.