Fed Chair Powell on Persistent Inflation, Ending Taper Sooner

The transcript discusses the current state of inflation, noting that it has exceeded 2% for a significant period. The term 'transitory' is considered outdated, and there's a need for clearer communication. The policy is adapting to ensure inflation does not become entrenched. The economy is strong, and inflationary pressures are high, prompting a reconsideration of the timeline for tapering asset purchases, possibly sooner than previously announced.

What does the speaker suggest about the term 'transitory' in relation to inflation?

• It has a clear, universal meaning.

• It should be used more frequently.

• It accurately describes the current inflation situation.

• It should be retired due to varied interpretations.

How does the speaker describe their approach to policy in response to inflation?

• Dependent on external advice.

• Focused solely on interest rates.

• Adaptable and responsive.

• Rigid and unchanging.

What is the speaker's main concern regarding inflation?

• That it is not high enough.

• That it will decrease too quickly.

• That it will become a permanent issue.

• That it is only affecting certain sectors.

What does the speaker suggest about the economy's current state?

• It is unpredictable and volatile.

• It is strong with high inflationary pressures.

• It is weak and struggling.

• It is stable with low inflation.

What action does the speaker propose regarding asset purchases?

• To delay any changes until next year.

• To wrap them up sooner than planned.

• To maintain them at the current level.

• To increase them significantly.