The Fed seems to be rethinking whether inflation is "transitory." This may also suggest sooner-than-expected interest rate increases are in the works next year.
The Fed will likely curtail bond-buying soon in response to inflation, and investors increasingly expect benchmark interest rates to rise as early as mid next year.
The Federal Reserve chair said the U.S. central bank will wait until the economy has "all but fully recovered" to pull back the monetary support it rolled out in response to Covid-19.