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Fed Comes Under Pressure As Inflation Persists
Fed Chair Says Inflation Now Likely To 'Linger Well Into Next Year'
November 30, 2021—After months of downplaying inflation as a temporary condition, U.S. Federal Reserve Board Chair Jerome Powell said inflation has now spread much more widely beyond the sectors impacted by supply chain bottlenecks.
'Transitory' No More
"I think it's probably a good time to retire that word and explain what we mean," Powell told senators at a Banking Committee hearing.
Surging Economic Growth
The U.S. economy is now growing at 5 percent, which is the "fastest pace in many years," Powell said. Meanwhile, the unemployment rate is down to 4.6 percent. Asked by Sen. Jack Reed, D-R.I., about the drop in the U.S. labor participation rate, Powell said fears about the pandemic are the likely cause.
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