Powell On Whether Transitory Message Is Reaching Struggling Families

Q: What is your message to families struggling with inflation? Is your "transitory" message reaching them?

• A: Powell says the Fed's responsible and accountable for inflation "in the medium-term". But: "the level of inflation we have right now is not consistent with price stability.... I want to ensure people we will use our tools as appropriate to get inflation under control. We don't think it's a good time to raise interest rates though because we want to see the labor market heal further. We have good reason to think that will happen."
• Re transitory: "carries a sense of short-lived, there is a time component measured in months.. It is: will not leave behind permanently or persistently higher inflation."
• Says they adjusted the language in the statement: "We said supply and demand and balances related to the pandemic and reopening of the economy have contributed to sizable price increases. We are trying to explain what we mean, and also acknowledging more uncertainty about "transitory". It's become a word that has received a lot of attention, which is distracting from our message which we want to be as clear as possible."