Fed Chair Jerome Powell's Insight on 2021 Inflation

During a recent session with the House Financial Services Committee, Federal Reserve Chair Jerome Powell shared insights on the initial perception of the 2021 inflation surge as 'transitory.' This perspective led the central bank to delay interest rate hikes.

Powell acknowledged, looking back, that an earlier adjustment in monetary policy might have been beneficial. However, he questioned the potential impact of such actions. He emphasized that the Fed's previous policy framework did not limit its capacity to address the inflation spike effectively.