Economics
Transitory Is ‘Dirty Word’ as Inflation Lasts, Fed’s Bostic Says
- The Atlanta Fed chief says price pressures are broadening
- Bostic favors tapering bonds, sees liftoff in more than a year
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Federal Reserve Bank of Atlanta President Raphael Bostic said this year’s inflation surge is lasting longer than policymakers expected, so it’s not appropriate to refer to such price increases as transitory.
“Transitory is a dirty word,” Bostic said in a virtual speech to the Peterson Institute for International Economics on Tuesday. He spoke with a glass jar labeled “transitory” at his side, depositing $1 each time he used the “swear word,” as it’s become known to him and his staff over the past few months.