Jerome Powell pivots, suggesting quicker reduction
in economic help as high inflation persists.
https://www.nytimes.com/2021/11/30/business/powell-bond-buying-taper.html
https://www.nytimes.com/2021/11/30/business/powell-bond-buying-taper.html
Markets Race to Process Latest ‘Powell Pivot’
A Top Official Says the Fed Will ‘Grapple’ With a Faster Bond-Buying Taper
https://www.nytimes.com/2021/12/01/business/fed-inflation-omicron-covid.html
Powell Weighs Earlier End to Bond Tapering Amid Hot
Inflation
Jerome Powell:
https://www.federalreserve.gov/newsevents/testimony/powell20211130a.htm
Most forecasters, including at the Fed, continue to expect that inflation will move down significantly over the next year as supply and demand imbalances abate. It is difficult to predict the persistence and effects of supply constraints, but it now appears that factors pushing inflation upward will linger well into next year. In addition, with the rapid improvement in the labor market, slack is diminishing, and wages are rising at a brisk pace.
https://www.federalreserve.gov/newsevents/testimony/powell20211130a.htm
Most forecasters, including at the Fed, continue to expect that inflation will move down significantly over the next year as supply and demand imbalances abate. It is difficult to predict the persistence and effects of supply constraints, but it now appears that factors pushing inflation upward will linger well into next year. In addition, with the rapid improvement in the labor market, slack is diminishing, and wages are rising at a brisk pace.
How did the Fed get it so wrong on inflation?
https://thehill.com/opinion/finance/581582-how-did-the-fed-get-it-so-wrong-on-inflation
A still-dovish Fed raises the risk of stagflation lite
https://thehill.com/opinion/finance/580712-a-still-dovish-fed-raises-the-risk-of-stagflation-lite