Powell has made some more eye-catching comments, the first concerning keeping the public focused on “risk management”.
Speaking once again on cryptocurrencies, Powell insisted that they have “failed” as a payment system, a factor of their volatile prices and heft transaction fees.
As his testimony comes to an end, Powell denied that prices are moving up broadly across the economy. Should inflation expectations get out of control, the Fed will “react”, Powell promised (without offering much in the way of detail).
Earlier, Powell said he’s not concerned about the rising cost of living in the US as the most intense price pressures have been confined to only a handful of areas (like used cars, for example). He added that he would only become concerned about inflation once large price increases have grown more widespread. But as Peter Schiff pointed out in a tweet, by then, it’s already too late.