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Powell Turns to Inflation

FED
  • Readings have increased, and "in the near term, 12 PCE inflation expected to move above 2% as the low readings from early in the pandemic fall out of the calculation and past increases in oil prices pass through to consumer energy prices."
  • Beyond this, "we're likely to see upward pressure from the rebound in spending" upon reopening. But these are "one time" increases.
  • "Our ability to achieve maximum employment in the years ahead depends on longer-term inflation expectations well anchored at 2%."
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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