The Federal Reserve will not revise its monetary stimulus regime despite rising inflation.
One day after the Department of Labor revealed that inflation had risen to a 5.4% year-over-year rate in June, Fed Chair Jerome Powell acknowledged that price levels have “increased notably and will likely remain elevated in coming months before moderating.” Nevertheless, Powell insisted that such inflation is temporary and primarily driven by post-COVID supply chain bottlenecks, telling Congress that the central bank is not prepared to amend its quantitative easing regime.
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