Early last week, Federal Reserve Chair Jerome Powell said in prepared testimony for a congressional hearing that the U.S. economy continues to show “sustained improvement” from the impact of the coronavirus pandemic and ongoing job market gains, but inflation has “increased notably in recent months.”
Powell did not go into detail in his prepared remarks on current monetary policy, or the possibility the U.S. central bank may have to speed up it plans to pull back on some support for the economy because of the faster rise in prices.
In his remarks, Powell said he regards the current jump in inflation, in fact, as likely to fade.
“We will not raise interest rates pre-emptively because we fear the possible onset of inflation. We will wait for evidence of actual inflation or other imbalances,” Powell said in a hearing before a House of Representatives panel.
Not all Fed members were on the same side as Fed Chair Powell, however.
St. Louis Fed President James Bullard said the Federal Reserve should be prepared for inflation to surprise on the high end through next year.
Powell did not go into detail in his prepared remarks on current monetary policy, or the possibility the U.S. central bank may have to speed up it plans to pull back on some support for the economy because of the faster rise in prices.
In his remarks, Powell said he regards the current jump in inflation, in fact, as likely to fade.
“We will not raise interest rates pre-emptively because we fear the possible onset of inflation. We will wait for evidence of actual inflation or other imbalances,” Powell said in a hearing before a House of Representatives panel.
Not all Fed members were on the same side as Fed Chair Powell, however.
St. Louis Fed President James Bullard said the Federal Reserve should be prepared for inflation to surprise on the high end through next year.