Fed Chair Jerome Powell Suggests It Is Time to ‘Retire’ the Phrase ‘Transitory’ Regarding Inflation
Federal Reserve Chairman Jerome Powell believes it is time to stop using the term “transitory” in reference to inflation.
During a Senate hearing on Tuesday, Sen. Pat Toomey (R-Pa.) noted that Powell believes inflation is “transitory.”
“But everything is transitory. Life is transitory,” he added before asking, “How long does inflation have to run above your target before the Fed decides maybe it’s not so transitory?”
Powell responded, “I think the word ‘transitory’ has different meanings to different people.”
“To many, it is a sense of short-lived. 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 more clearly what we mean,” he added. – READ MORE
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