Fed Chairman Jerome Powell was in a Senate hearing today where he was asked about the current inflation being transitory:
Powell suggested that inflation has been with is for long enough to retire the word ‘transitory’:
“First of all the test that we’ve articulated I think clearly has been met now. You’re absolutely right. Inflation has run well above two percent for long enough that if you look back a few years inflation averages two percent. So I think we can say…that was not the case going into this episode. It’s been many years since we’ve had inflation at two percent.
So I think the word ‘transitory’ has different meanings to different people. To many it carries a sense of short-lived. We tend to use it to mean that it won’t leave a permanent mark in the form of higher inflation. I think it’s probably a good time to retire that word and try to explain more clearly what we mean.”
I guess Bidenflation is here to stay. Maybe it would have been transitory if he hadn’t wrecked the economy with his covid madness.