Reported 1 day ago
Federal Reserve Chair Jerome Powell has reignited discussions about the term 'transitory' in relation to inflation, suggesting that current inflation pressures resulting from tariffs may not be permanent. This echoes previous misjudgments during the COVID-19 pandemic when the Fed underestimated inflation, leading to a significant policy error as inflation reached a four-decade high. Powell admitted the current situation differs from past experiences, emphasizing the uncertainties in predicting inflation trends, while some analysts warn it is premature to label inflation as merely transitory.
Source: YAHOO