Jerome Powell: Fed ‘not at all sure’ inflation will slow next year

[Right_in_Virginia]

Jerome Powell: Fed ‘not at all sure’ inflation will slow next year
Washington Times, Dec 1, 2021

WASHINGTON — In a fresh sign of his growing concerns about inflation, Chair Jerome Powell said Wednesday that the Federal Reserve can’t be sure that price increases will slow in the second half of next year as many economists expect.

Powell told the House Financial Services Committee that most economists regard the current price spikes, which have sent consumer inflation to a three-decade high, as largely a response to the pandemic’s persistent disruptions to supply and demand. As Americans have spent more time at home, they have ramped up spending on furniture, appliances, laptop computers. Soaring demand for such goods, combined with parts shortages, have resulted in supply chain snarls and higher prices.

In the past, Powell, who was nominated last week to a second four-year term by President Joe Biden, has frequently expressed his belief that these supply-and-demand imbalances should fade as the pandemic eases, which would reduce inflation. But on Wednesday, he said that while such an outcome is “likely,” it is only a forecast.

“The point is, we can’t act as if we’re sure of that,” he said. “We’re not at all sure of that. Inflation has been more persistent and higher than we’ve expected.”

At the same hearing Wednesday, Treasury Secretary Janet Yellen clashed with many committee Republicans, who charged that excess spending by the Biden administration has been a major contributor to high inflation. The administration’s proposed $2 trillion social and environmental spending bill, they further argued, would further accelerate inflation.


More:  https://www.washingtontimes.com/news/2021/dec/1/jerome-powell-not-all-sure-inflation-will-slow-nex/

[LMAO]

We're screwed

[Hoodat]

Throughout history, can anyone come up with an instance where the Fed Chairman was actually right about something?

[Kamaji]

Throughout history, can anyone come up with an instance where the Fed Chairman was actually right about something?

Well, when he or she has opened a public address with the remark "Good morning ...", that part was usually correct.

Other than that, no, not really.

[Hoodat]

Well, when he or she has opened a public address with the remark "Good morning ...", that part was usually correct.

At least that's more credible than when Obama would open up with "My fellow Americans".

[Kamaji]

At least that's more credible than when Obama would open up with "My fellow Americans".

[DefiantMassRINO]

The economy needs supply side government policy and old fashioned trust busting.

Until fossil fuel companies have reasonable certainty that their long-term capital investments will provide sufficient returns to justify the risk, they have no incentive to make investments for future production.

It's too much of a pita to build anything in America.

We need to stop doing business with China.  In what world does it make sense to give our most dangerous competitor our capital and intellectual property?  They are Communists.  They have no interest in allowing foreign interests to profit.  They use the lure of potential profits to trick Western interests into allowing them to steal their intellectual property and their competitive advantages.

Globalism has failed because it does not improve the lives of nations' citizens.  Globalists are swarms of locusts that destroy all they are allowed to consume.

[catfish1957]

Slow? 

With addtional $2-$4T in additonal spending and dilution?  With the percentage of that porkulus outlay acutally into infrastructure at about 10%?  Broken supply chain that is basically a  pack of weasels in a feeding frenzy on its own pack?

All signs point toward inflation acceleration.  And maybe at rates never seen before in this country.