Powell admits Fed got it wrong on inflation, says they should stop calling it 'transitory'

Federal Reserve Chairman Jerome Powell acknowledged Tuesday that he now expects high inflation to continue into the middle of 2022, stating that the government should no longer push what had been a recurring slogan of it being "transitory."

During a hearing before the Senate Banking Committee, Powell noted that when the Fed says "transitory," they do not mean it as just referring to how long inflation will last, as the average person might expect. Still, he said it is time to stop using the word.