Powell Expects Temporary Rise in Prices

The United States Federal Reserve does not plan to reduce the current measurements to support the American economy, Chairman Jerome Powell said on Thursday during the International Monetary Fund and World Bank spring meetings.

Powel expects the rise in inflation this year to be temporary, noting that the recovery depends on the state of the pandemic with surging cases likely to slow the economic recovery.

“Cases are moving back up here, so I would just urge that people do get vaccinated and continue socially distancing.”

“We don’t want to get another outbreak: even if it might have less economic damage and kill fewer people, it’ll slow down the recovery.”

“We think there will be upward pressure on prices which may be passed along to consumers in the form of price increases – we think that that will be temporary,” Powell said.

“If inflation were unexpectedly, counter to our expectations, to move meaningfully above levels where we are comfortable – and in particular inflation expectations… if we see them moving persistently and materially above levels we are comfortable with, then we would react to that.”

“I have another massive challenge that I’m very focused on, and that is just to do my job every day as best I can to serve all of the American people.”

“I don’t spend any time thinking about that. I spend a lot of time thinking about how do we do the best job that we can and that’s enough to think about.”