Federal Reserve Chair Jerome Powell said officials should weigh removing pandemic support at a faster pace, and he retired the word "transitory" to describe stubbornly high inflation, though a new Covid-19 strain remains a risk.
His comments Tuesday before the Senate Banking Committee, where both Democrats and Republicans expressed concerns about high prices, were taken by financial markets as a hawkish pivot. In addition to an accelerated schedule for tapering its bond-buying program, the Fed may deliver sooner-than-expected interest rate increases next year.
"It is appropriate, I think, for us to discuss at our next meeting, which is in a couple of weeks, whether it will be appropriate to wrap up our purchases a few months earlier," said Powell, selected last week by President Joe Biden for another four-year term as Fed chief. "In those two weeks, we are going to get more data and learn more about the new [Covid] variant."
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
