the whole industry all along has said... Inflation is not transitory, and they may talk tough but they have limited tools to fight against it given the debt level in the states...
Modern Monetary policy is nothing new... Print money and spend it, damn the future generations to pay for our inability to live within our means...
Gold price sheds gains as Powell hints more aggressive tapering, wants to drop 'inflation is transitory' term
(Kitco News) Gold fell below the $1,800 an ounce level again, shedding around $25 as Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen testified before the U.S. Senate Banking Committee.
The price of the yellow metal moved down when Powell spoke about a more aggressive tapering and more problematic inflation, sounding more hawkish than before.
Powell told the U.S. Senate that the U.S. central bank would be considering wrapping up tapering a few months earlier than June.
"At our next meeting, it is appropriate for us to discuss whether to wrap up our asset purchases a few months earlier," he said. "We've seen elevated inflation pressures, strong labor market data, strong spending data. Every dollar of asset purchases does increase accommodation. The U.S. economy is strong and inflationary pressures are high."
Powell also stated that at this point, it is best to drop the term "inflation is transitory," adding that the risk of more persistent inflation is higher.
"The threat of persistently higher inflation has grown. We will use our tools to make sure higher inflation will not become entrenched. We can now see higher inflation persisting through to the middle of next year," he noted.
What was missed about inflation was the supply problems, Powell clarified. "We didn't predict the supply-side problems. That's what we missed," he said.
In response to Powell's testimony, gold tumbled from the daily high of $1,811.40 to a low of $1,772.20, down nearly $40. At the time of writing, December Comex gold futures were trading at $1,780.50, down 0.26% on the day.