Fed’s Powell says decades-long trend of weak inflation likely won’t change from new stimulus — at least not immediately

Summary List Placement

Additional fiscal stimulus is expected to lift inflation, but the quarter-century trend of weak price growth will likely remain intact, Federal Reserve Chair Jerome Powell said Tuesday.

With Democrats plowing forward with efforts to pass a $1.9 trillion stimulus plan, the focus has shifted from the package’s elements to its effect on inflation. Where Democrats argue the measure is necessary to fill the hole in the US economy, Republicans have warned the bill will overfill the hole and kickstart a worrying rise in inflation.

Several factors stand to accelerate price growth in the near term, Powell details ⇒

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