Posted on Nov 30, 2021, 6:28 PMUpdated Nov 30, 2021, 7:40 PM
Jerome Powell has stopped talking about “transient” inflation. By pushing back the horizon of a lull in price increases, the President of the Federal Reserve agreed Tuesday, during a hearing in the Senate, that it was time to put the expression aside. “Clearly, the risk of persistent inflation has grown,” admitted the central banker, causing stock market indices to fall in New York, in financial markets already worried about the Omicron variant.
Consumer prices are up 6.2% year-on-year, and if the Federal Reserve favors another indicator (PCE), it follows the same trend, with a 5% jump over twelve months (+4.1 % excluding food and energy). “The factors pushing inflation up will remain for a good part of next year,” Jerome Powell said in the preamble to his hearing – the first half of 2022, he told senators.
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