What did Jerome Powell say about inflation ?

 

What did Jerome Powell say about inflation ?

Jerome Powell, the Chairman of the Federal Reserve, recently commented on the issue of inflation and its impact on the economy. In a speech delivered at the virtual Jackson Hole Economic Symposium, Powell acknowledged that inflation has risen in recent months due to a combination of factors, including supply chain disruptions, strong consumer demand, and the reopening of the economy following the COVID-19 pandemic.

Powell emphasized that the Federal Reserve is closely monitoring the situation and is committed to achieving its dual mandate of maximum employment and stable prices. He noted that while inflation has exceeded the Fed's target of 2% in the short term, this is seen as a temporary phenomenon rather than a long-term trend.

The central bank is expected to remain patient and continue its current monetary policy stance, which includes keeping interest rates near zero and maintaining its asset purchase program until substantial progress has been made towards the Fed's goals. Powell reiterated that the Fed will adjust its policies as needed to ensure that inflation remains within its target range.

In addressing concerns about the potential for runaway inflation, Powell stated that the Fed has the tools and experience to manage inflationary pressures and is prepared to take action if necessary. He also emphasized the importance of clear communication and transparency in guiding market expectations.

Overall, Powell's remarks reflect a cautious approach to inflation, recognizing the current challenges while expressing confidence in the Fed's ability to navigate them. The central bank will continue to monitor economic developments closely and adjust its policies as needed to support the recovery and ensure price stability.