Morgan Stanley Managing Director Kathy Entwistle join Yahoo Finance to discuss inflation, the slowing support from the Federal Reserve, and the implications for markets.
Wall Street's main indexes fell more than 1% on Tuesday after Federal Reserve Chair Jerome Powell signaled that the U.S. central bank would consider speeding up its withdrawal of bond purchases as inflation risks increase, piling pressure onto a market already nervous about the latest COVID-19 variant. In a testimony before the Senate Banking Committee, Powell indicated that he no longer considers high inflation as "transitory" and that the Fed would revisit the timeline for scaling back its bond buying program at its next meeting in two weeks.
Wall Street's main indexes tumbled more than 1% on Tuesday after Federal Reserve Chair Jerome Powell said the risk of higher inflation has increased and that it was appropriate to consider wrapping up tapering of bond purchases a few months sooner. In his testimony before the Senate Banking Committee, Powell said it is a good time to retire "transitory" description for inflation, adding the U.S. central bank is widely expected to revisit taper timeline at its next meeting in two weeks.