Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Fed Chair Powell Retires 'Transitory,' the Dollar Flies

ForexNov 30, 2021 11:55AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Sam Boughedda

Investing.com — The U.S. Dollar staged an extremely strong rally against other major currencies Tuesday after comments from Fed Chair Jerome Powell in which he said it's time to retire the word transitory and indicated the central bank could speed up the pace of cutting its monthly bond buying. 

Speaking to the Senate Banking Committee, Powell said, "At this point, the economy is very strong and inflationary pressures are higher, and it is therefore appropriate in my view to consider wrapping up the taper of our asset purchases, perhaps a few months sooner."

At the Fed's November meeting, it said it would reduce bond purchases by $15 billion a month. 

Furthermore, Powell said the risk of persistently higher inflation has increased, and he expects high inflation through next year, although the baseline expectation is that it will move back down over the course of 2022.

Reacting to Powell's comments, U.S. dollar-related assets moved in the greenback's favor. The EUR/USD fell over 100 pips, likewise the GBP/USD and other dollar pairs, while XAU/USD dropped around $38.

A notable remark from the Fed chair was on the use of the word "transitory," relating to the current stance of Fed officials on inflation. However, Powell said it is probably not beneficial anymore.

Powell stated, "the word transitory has different meanings for different people," adding that they "tend to use it to mean it won't leave a permanent mark in the form of higher inflation."

Nevertheless, he thinks it's "probably a good time to retire that word and try to explain more clearly what we mean."

Powell is not diverging from the current stance that inflation is temporary, but that the word itself needs to be retired, and the Fed needs to explain more clearly what it means.

Fed Chair Powell Retires 'Transitory,' the Dollar Flies
 

Related Articles

Dollar Lower as Longs Head For The Exit
Dollar Lower as Longs Head For The Exit By Investing.com - Jan 14, 2022 4

By Peter Nurse Investing.com - The U.S. dollar weakened in early European trade Friday, heading for its worst week in more than a year as traders now consider Federal Reserve...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (12)
Bizan Ragbar
Bizan Ragbar Dec 07, 2021 9:50AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it's very good.. in my Security Privacy policy Act.. I Need Urgently
Anturangga Tantra
Anturangga Tantra Nov 30, 2021 4:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
see? SEE???? "Transitory" what did it even mean? How did he said inflation was "transitory" and Wall Street believe him????
Bill Riley
Bill Riley Nov 30, 2021 4:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden shut down America's oil supply, then we got inflation.
Peter ONeill
Peter ONeill Nov 30, 2021 4:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Pretty sure it was Trump who demanded OPEC cut supply and then thanked them for cutting supply ;)
george moller
george moller Nov 30, 2021 4:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Peter ONeill  Who was it that stopped the pipelines from Canada? Not Trump.
King Tolba
King Tolba Nov 30, 2021 1:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Powell plays the virtuous ****
David SheepofCCP
David SheepofCCP Nov 30, 2021 1:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden administration and Democrat controlled Congress are also "Transitory".
David David
David9 Nov 30, 2021 1:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lol... I like your joke name...
Jackson Hhayuma
Jackson Hhayuma Nov 30, 2021 1:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I was busy for a bit then bam! all my trades hit SL lost 8,000 USD I never listen to speeches but I might have to consider powell
Antonio Velardo
Antonio Velardo Nov 30, 2021 1:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Anytime this guy says something it’s a pain…
Roger Miller
Roger Miller Nov 30, 2021 1:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Analysts and business leaders have been saying for months that it wasn’t transitory, meaning Powell and his cohorts are either not as smart as most, or were intentionally misleading people.
George Pichurov
George Pichurov Nov 30, 2021 12:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
are those FED cranks indulging as english teachers or what?
Jackson Hhayuma
Jackson Hhayuma Nov 30, 2021 12:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
your profile pic man LMAO!
Gordon Edgett
Gordon Edgett Nov 30, 2021 12:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The Fed knows nothing. Transitory. What world are they living in. Apparently, not in the everyday Americans.
Wankel YU
Wankel YU Nov 30, 2021 12:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
life is also transitory 🍺🍺🍺
Bab Galley
Bab Galley Nov 30, 2021 12:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
👍
Cassius Stone
Cassius Stone Nov 30, 2021 12:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I'm new to fundamentals. Is this good for USD in the long term?
Cassius Stone
Cassius Stone Nov 30, 2021 12:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Reducing bond purchases I mean.
Wallace Rose
Wallace Rose Nov 30, 2021 12:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
watch emil kalinowski on youtube. he and Jeff Snider will explain how you should view the Fed's actions. it's a great way to understand the media hype.
perplexed76 .
perplexed76 . Nov 30, 2021 12:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
EUR/USD is going to 0.8 in long term
Stan Smith
Stan Smith Nov 30, 2021 12:22PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Everyone knew that it wasn't transitory except for the snake oil market pumping shills
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email