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Powell Says Inflation a "Faint Heartbeat"

FED

Q: We could see pent-up demand for services but limited supply, how might that impact inflation in your mind?

  • A: That has all the markings of a transient increase in the price level. But a single price level increase has not translated into prolonged increases. [Draws comparison with the inflation dynamics of the 70s].
  • Inflation is a 'faint heartbeat' of what it was years ago. Would expect this to be a one-off, not a persistent increase.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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