Federal Reserve Chairman Jerome Powell said that, in light of high inflation, the central bank might wind down its bond-purchasing program sooner.
Powell, testifying before the Senate Banking Committee alongside Treasury Secretary Janet Yellen, faced questions about inflation, which has been soaring all year.
The Fed has insisted that inflation, which is running at 6.2% for the year ending in October, is “transitory” and will tamp down. On Tuesday, though, the chairman said that term might no longer be appropriate.
“I think the word ‘transitory’ has different meanings to different people. To many, it carries a sense of short-lived — we tend to use it to mean that it won’t leave a permanent mark in the form of higher inflation,” Powell told lawmakers. “I think it’s probably a good time to retire that word and try to explain more clearly what we mean.”
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The Fed also embarked …