| Author | Message | ||
     Entrepreneur Kurra Bewarse Username: Entrepreneur Post Number: 3823 Registered: 05-2011 Rating: N/A |
Fed Chair Powell: Real risk now that inflation may be more persistent I do think there's a broad expectation among forecasters, including our own, that the bottlenecks will alleviate sometime over the course of this year. If you look at where blue chip forecasts are, which is the group of well resourced large forecasting operations with a long track record, they'll show inflation coming back down significantly toward the back end of next year. We can't act as though that's a certainty and we're not going to act as though that's a certainty. There's a real risk now, we believe, I believe, that inflation may be more persistent and that may be putting inflation expectations under pressure, and that the risk of higher inflation becoming entrenched has increased. It's certainly increased. I don't think it's high at this moment but I think it's increased and I think that's part of the reason behind our move today is to put ourselves in a position to be able to deal with that risk and I think we are in a position to deal with that risk. |