Inflation is not transitory, says Fed chair

RT.com
01 Dec 2021, 01:43 GMT+10

Federal Reserve Chairman Jerome Powell informed a Senate committee on Tuesday that ?transitory? is a word that should be retired when talking about inflation as it suggests the phenomenon will be 'short-lived.?

Asked about his use of the term transitory when speaking about inflation by Sen. Pat Toomey (R-Pennsylvania), Powell admitted the word's actual definition may not exactly fit what he and others have been trying to get across to Americans dealing with record inflation and booming costs on everything from food to fuel.

"It carries a time, a sense of [being] short-lived," Powell said of the word in question. "We tend to use it to mean that it won't leave a permanent mark in the form of higher inflation. I think it's probably a good time to retire that word and try to explain clearly what we mean."

Stock markets took a hit following Powell's remarks, with the Dow Jones, S&P, and Nasdaq indexes all tumbling by over 1%, which marked 500 and 200 points for the Dow Jones and Nasdaq.

Inflation hit a 30-year high in October, with consumer prices rising 6.2%, which had already followed months of rising costs and inflation over 5%, as reported by the Labor Department.

The Fed chair said because consumer market rates have continued to rise, it may be time for the Federal Reserve to change its strategy of bond purchases, meant to help the economy recover, though some have said the Fed's economic meddling has only further contributed to a ballooning market.

"At this point, the economy is very strong and inflationary pressures are high and it is therefore appropriate, in my view, to consider wrapping up the taper of our asset purchases," he said.

(RT.com)

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Central Coast News.

More Information

null in null

Business

Section

Bitcoin soars to a record on Trump policies, institutional demand

NEW YORK CITY, New York: Bitcoin surged to a new all-time high this week, buoyed by growing institutional interest and a wave of pro-crypto...

Huawei eyes new buyers for AI chips amid U.S. export curbs

SHENZHEN, China: As global chip competition intensifies, Huawei Technologies is exploring new markets in the Middle East and Southeast...

U.S. food prices at risk as Brazil tariff hits key imports

LONDON/NEW YORK CITY: American grocery bills may be headed higher as coffee and orange juice prices face upward pressure from new tariffs...

WK Kellogg sold to Ferrero as food giants chase shelf power

BATTLE CREEK, Michigan: In a major consolidation of iconic food brands, WK Kellogg has agreed to be acquired by the owner of Ferrero...

Filmmaker joins biotech effort to bring back extinct giant bird

WASHINGTON, D.C.: Filmmaker Peter Jackson's lifelong fascination with the extinct giant New Zealand flightless bird called the moa...

India seeks WTO nod for retaliatory tariffs on US

NEW DELHI, India: India has submitted a revised proposal to the World Trade Organization (WTO) in Geneva to implement retaliatory tariffs...

California

Section

"Landing will also take place smoothly tomorrow": Group Captain Shubhanshu Shukla's father on Axiom-4's successful undocking

Lucknow (Uttar Pradesh) [India], July 14 (ANI): As the Dragon spacecraft of the Axiom-4 mission successfully undocked from the International...