Powell speech: Its a good time to retire the word “transitory” for inflation
|Fed Chair Jerome Powell is testifying before the Committee on Banking, Housing, and Urban Affairs of the US Senate alongside US Treasury Secretary Janet Yellen.
Key takeaways:
"Higher prices are generally related to supply-demand issues."
"Also the case that price increases have spread more broadly."
"Risk of higher inflation has increased."
"It's a good time to retire 'transitory' for inflation."
Market Reaction
The US dollar, short-end and real US yields all popped higher in response to Powell's hawkish comment that it is time to retire the word "transitory" to describe inflation.
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