Free Trial

MNI BRIEF: Fed to Stay Patient on Temporary Inflation Spikes

WASHINGTON (MNI)

Federal Reserve Chair Jerome Powell told reporters Wednesday the Fed does not expect inflation to pick up significantly and would not react to what it sees as temporary spikes.

"Expect us to be patient," Powell said. "We'll seek inflation moderately above 2% for some time. The way to achieve credibility on that is that actually do it."

Powell cited "significant disinflationary pressures" in the U.S. economy over the last two decades as reason for remaining circumspect about the prospect of sudden spike in unwanted inflation.

MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com
MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.