Posted by on November 25, 2021 1:01 pm
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Categories: Breaking News Epoch Times News

Fed Officials Tweak ‘Transitory’ Inflation Narrative, Vow Action If Price Pressures Stay Too High

New documents detailing closed-door discussions at the most recent Federal Reserve policy meeting show officials softening their “transitory” view of inflation, acknowledging the recent bout of higher prices as more intense and longer-lasting than they previously believed while vowing to act more aggressively if inflationary pressures stay elevated for too long. Minutes of the Nov. 2–3 meeting of the Federal Open Market Committee (FOMC), released Nov. 24, indicate that members revised upwards their near-term outlook for inflation, blaming faster-than-expected consumer food and energy price rises, along with production bottlenecks, wage gains, and a tightening labor market. They said they expected inflation to accelerate relative to September’s pace, anticipating that the 12-month change in the personal consumption expenditures (PCE) price index would go up and end the year “well above 2 percent,” which is the Fed’s target inflation rate. Recent Commerce Department data has borne out this prediction. The headline PCE …

Originally appeared on The Epoch Times

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