Team Transitory is throwing in the towel.
In a clear sign that the U.S. Federal Reserve is shifting to tighter monetary policy, Jerome Powell ¡ª who¡¯s spent months arguing that the pandemic surge in inflation was largely due to transitory forces ¡ª told Congress on Tuesday that it¡¯s ¡°probably a good time to retire that word.¡±
The Fed chair, tapped last week for another four-year term, still thinks inflation will ebb next year. But in testimony before the Senate Banking Committee, he acknowledged that it¡¯s proving more powerful and persistent than expected, and said the Fed will consider ending its asset purchases earlier than planned.
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