Powell admits that inflation is well above the Fed’s target, but he still considers it transitory. Gold increased in response – only to fall again. Last week, Powell testified before Congress. On the one hand, Powell admitted in a way that inflation had reached a level higher than expected and is above the level accepted by the Fed in the longer run: Inflation has increased notably and will likely remain elevated in coming months before moderating. It means that the Fed was surprised by high inflation, but it doesn’t want to admit it explicitly. Instead, Powell admitted that inflation would likely stay at a high ... (full story)