$59,024.41 -3.13%
BTC · 2w

Federal Reserve officials concerned inflation could last longer 'than they currently assumed'

The Federal Reserve expressed concerns about inflation during a September meeting, with participants warning it may be having a "larger or more persistent effects" than what is "currently believed."

"Most participants saw inflation risks as weighted to the upside because of concerns that supply disruptions and labor shortages might last longer and might have larger or more persistent effects on prices and wages than they currently assumed," read minutes of the meeting released Wednesday.

Meeting participants noted continued downside "downside risks" from the future of the COVID-19 pandemic, also noting the "possibility of more severe and persistent supply issues."

According to data released by the Labor Department on Wednesday, consumer prices rose by 0.4 percent in September and 5.4 percent in the past year. Core inflation — which does not factor in food or energy costs — rose by 0.2 percent, keeping within expectations.

Federal Reserve officials and the Biden administration have said they believe inflation will cool off as the economy adjusts to the next phase of its recovery. Treasury Secretary Janet YellenJanet Louise YellenWho is afraid of the EU's carbon border adjustment plan? Federal Reserve officials concerned inflation could last longer 'than they currently assumed' Equilibrium/Sustainability — Presented by Altria — We're falling behind in race for net zero, key energy agency says MORE said in an interview this week that she saw the current inflation as "transitory."

Despite their concerns, meeting participants appeared to have a generally optimistic outlook on the economic recovery. During the meeting, the Federal Reserve also discussed the possibility of gradually reducing its monthly asset purchases.

This process would begin by cutting $10 billion a month in Treasury securities and $5 billion a month in mortgage-backed securities. The Fed is currently buying at least $80 billion in Treasury and $40 billion i...

Continue on
Recent news
BTC -3.13% · · 5h

El Salvador adds another 420 bitcoins to its reserves

El Salvador’s president, Nayib Bukele, announced a new acquisition of 420 bitcoins, about $25 million, for his country’s reserves. The Salvadoran president made the information public through a tweet ...
BTC -3.13% · · 16h

99 Pay users will be able to buy Bitcoin in the app

Users of the 99 Pay wallet, from Uber’s competitor mobility company, will be able to buy Bitcoin directly in the app. This new addition complements the option to earn Bitcoin cashback when using the c...