@BTtransitory
“ At a recent speech, Atlanta Fed President Raphael Bostic brought along a jar with the word “transitory” written on it. It was a central banker’s version of a swear jar, in which offenders have to donate a dollar for every profanity they utter. In this version, though, the curse word is “transitory.”
That’s because Bostic, who is considered in some circles as a longshot bet to replace current Powell when his term is up in February, thinks transitory is not the correct way to frame inflation. Instead, he prefers “episodic,” at a time of “animated price pressures” that he figures “will not be brief.”
“Data from multiple sources point to these lasting longer than most initially thought. By this definition, then, the forces are not transitory,” Bostic said. “I believe evidence is mounting that price pressures have broadened beyond the handful of items most directly connected to supply chain issues or the reopening of the services sector.”
No less an authority than the International Monetary Fund also warned recently that inflation could be worse than the transitory view and require higher rates to control. In its update last week on global economic expectations, the IMF said there was “high uncertainty” around inflation expectations, and said that in the case that it remains persistent, central banks like the Fed “should be prepared to act.””
https://www.cnbc.com/2021/10/19/fede...g-up-well.html