Fed Chair Powell Says on Track for Taper, Higher Inflation Could Last into 2022
Posted on 10/22/2021
Federal Reserve Chairman Jerome Powell disclosed on October 22, 2021 that they are “on track” to begin reducing its purchases of assets (tapering of asset purchases), and noted that he expects inflation to abate in 2022 as pressures from COVID-19 fade.
“Supply constraints and elevated inflation are likely to last longer than previously expected and well into next year, and the same is true for pressure on wages,” Powell said in a virtual appearance. The most likely case is for inflation pressures to abate and job growth to resume its pace from this past summer, he said, but “if we were to see a risk of inflation moving persistently higher, we would certaintly use our tools.”
Keywords: Federal Reserve System.