Reopening price increases in 2021 will not lead to persistently higher US inflation above the Fed's 2% goal.
Inaccurate ●●●●●
“In an episode of one-time price increases as the economy reopens is not the same thing as, and is not likely to lead to, persistently higher year-over-year inflation into the future”
- Said on
- 28 April 2021 · FOMC press conference
- Source
- Transcript of Chair Powell's Press Conference, April 28, 2021 · Federal Reserve
- Should come true
- No date given
- How sure they sounded
- is not likely to
- Categories
- Economy
- Importance
- 4 of 5 · The "transitory" call set Fed policy during the biggest US inflation surge in 40 years, with global market consequences.
Outcome
Inaccurate
Inflation did not stay transitory: PCE inflation rose to 6.8% (core 4.8%) by June 2022 and was still above 2% (2.6% headline, 2.8% core) at end-2024. The Fed dropped the "transitory" description in late 2021, so persistently higher inflation clearly happened.
- https://www.bea.gov/news/2022/personal-income-and-outlays-june-2022
- https://www.bea.gov/news/2025/personal-income-and-outlays-december-2024
History
- 2026-10-16 23:10:24 · created by claude
- 2026-10-16 23:11:48 · scored by claude
- 2026-10-16 23:54:04 · categorized by claude