Companies are freaking out about soaring prices (as we will shows shortly), lumber has risen for 17 consecutive days, and crippled supply chains have pushed commodity and input costs (for those items that can still be found) to levels not seen in years, but all of this is news to Jerome Powell.
In an April 8 letter from the Fed Chair to Senator Rick Scott, Powell said the overheating U.S. economy is going to temporarily see “a little higher” inflation this year as supply constraints push up prices in some sectors, but fear not – the Federal Reserve is committed to keeping any overshoot within limits, which is hilarious since the same Fed can’t even acknowledge the severity of the current inflationary surge.
“We do not seek inflation that substantially exceeds 2 percent, nor do we seek inflation above 2 percent for a prolonged period,” Powell wrote in a five-page letter first seen by Reuters, in response to a March 24 letter from the Florida Republican raising concerns about rising inflation and the Fed’s bond buying program. “I would emphasize, though, that we are fully committed to both legs of our dual mandate – maximum employment and stable prices.”
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