Shortly before the comment on asset purchases, Powell said it’s time to stop using the word “transitory” to describe inflation.
“We tend to use it to mean that it won’t leave a permanent mark in the form of higher inflation,” Powell said. “I think it’s a good time to retire that word and try to explain more clearly what we mean.”
Raising the prospect of a quicker tapering pace, after the biggest downward dynamic in stock markets in months, reveals a degree of insensitivity at the Fed. Stock market investors don’t take kindly to anything that restricts the liquidity on which valuations rely.Click HERE to subscribe to Fuller Treacy Money Back to top