[[[[[ Powell on Recent Inflation: ‘Are They More Than Bumps?’ The Federal Reserve Chairman seems unworried by accelerating prices in January and February.
That’s the question Jerome Powell asked Wednesday about the acceleration in inflation in January and February, and investors clearly think the Federal Reserve Chairman’s answer will be “no.” They bid up asset prices nearly across the board as Mr. Powell suggested that the latest monthly price-increase figures “haven’t really changed the overall story” of inflation’s march down to the Fed’s 2% target. ………. Mr. Powell showed no less determination to reach the Fed’s 2% inflation target, though the Fed players did project that core inflation is going to be higher at 2.6% this year than the 2.4% they projected in December. So inflation will be higher than previously expected, but monetary easing will continue as expected. We’ll see how that apparent contradiction holds up in the coming months. ]]]]]
Is he right on about the inflation decline? Is this a position that will end up being as regrettable as defining the inflation incline as TRANSITORY? Already for March, oil prices are spiking, which will likely add to inflationary pressures imo.
