Americans are not only worried about future inflation, but they are also dealing with dwindling purchasing power in real-time. Meanwhile, on Thursday, Federal Reserve chairman Jerome Powell plans to address the Senate Banking Committee and discuss inflation. In the remarks pre-published from Powell’s speech, the Fed chair noted that the recent inflation spike may last longer than the central bank anticipated.
Fed Chair Jerome Powell: ‘Inflation Effects Have Been Larger and Longer-Lasting Than Anticipated’
If you were to read reports published by news outlets like CNN or Axios, it’s likely the reporter would say something like “maybe we can ignore inflation expectations.” While CNN admits inflation is here, reporters like Dana Peterson blame things like the Covid Delta variant, chip shortages, labor costs, and the cost to rent. Similar to the opinions of politicians and Fed board members, CNN’s Peterson concludes that “inflationary pressure probably will be with us for a while longer.”
Jerome Powell’s speech on Thursday reflects