On Wednesday’s broadcast of “CNN Newsroom,” CNN Business Reporter Matt Egan stated that the Federal Reserve has gotten “more pessimistic” on inflation and CNN Economics and Political Commentator, Washington Post columnist, and PBS Special Correspondent Catherine Rampell said that the change in the Fed’s language appears to be a reaction to “a reversal in the numbers” that indicates that inflation maybe isn’t moderating.
Egan noted that the Fed is “getting more pessimistic, in some ways, on the inflation outlook. They took out a line that previously said, ‘Inflation has eased‘ they say, ‘Inflation remains elevated.‘”
Rampell stated, “[T]he Fed keeps on saying that they are data-dependent, that is one of Chair Powell’s favorite terms, so I think we’re really going to have to see what the inflation numbers look like — the inflation numbers, among other metrics, by the way — what they look like in the months ahead. The reason why that language was taken out about inflation cooling, presumably, is that there was a reversal in the numbers. It looked like inflation was moderating, and then some other recent data that we got in in the last month or so has indicated that maybe that’s not the case.”
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