Buckle up, Powell keeps his job and begins to do his job.
It’s appropriate to consider a faster pace of tapering, says Fed Chair Jay Powell in Congressional testimony. “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, which we actually announced at the November meeting, perhaps a few months sooner.”
Powell said it was time to “retire” the word “transitory,” when talking about the inflation picture.
Inflation appears to be not temporary or going way soon. “Inflation has spread more broadly across the economy recently… and the risk of higher inflation has increased.”
“It’s our role to ensure that higher inflation doesn’t become entrenched,” Powell said.
Higher interest rates???