“Supply-side constraints are getting worse,” Powell said at a virtual meeting on Friday. Authorities don’t want to be in a position to feel compelled to raise interest rates while pushing for monetary stimulus by buying assets. Inflation surges this year will last More than expected by central bank officials and private sector economists. This has spurred recent bond market expectations that the Fed will raise interest rates a little faster and faster. Officials said they “want to give it full-time to come back” before intentionally cooling demand for goods and services by raising interest rates.

Source: Wall Street Journal October 31, 2021 00:35 UTC