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Fed Chairman Jerome Powell retires the word 'transitory' in describing inflation

Author: jameslk

Score: 6

Comments: 2

Date: 2021-12-01 00:26:06

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gnicholas wrote at 2021-12-01 00:35:47:

Not surprising; he likely knew it wasn't transitory the whole time. But if he'd admitted it was permanent from the beginning, news outlets would have called it permanent, firms would have raised prices (more and sooner), and there would have been an even sharper upward spiral.

So instead he downplayed it as transitory for as long as possible, in an attempt to minimize the actual inflation trend.

errantmind wrote at 2021-12-01 00:57:43:

These 'mislead the public for their own good' approaches have and will continue to backfire as people stop trusting these institutions. What could go wrong? Guess we'll have a front-row seat.