Powell and Lagarde reassure inflation surge temporary

Federal Reserve Chair Jerome Powell and his counterparts at the ECB, Bank of Japan and Bank of England stressed, Wednesday, with cautious optimism that supply-chain disruptions lifting inflation rates are temporary.
Powell and Lagarde participated in a virtual panel event. Jerome Powell continues to view this year’s acceleration in inflation as temporary.
Lagarde echoed Powell’s message, arguing the current short period of inflation is largely attributable to the reopening of the economy. “We certainly have no reason believe that these price increases that we are seeing now will not be largely transitory going forward”, she added.
Central banks are beginning to contemplate what monetary policy will look like after rolling out extraordinary measures in 2020 as the coronavirus pandemic swept across the world economy.