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US Fed chief Powell insists inflation will pull back despite casting doubt over central bank’s forecasts

Fed Chair Jerome Powell And Janet Yellen Testify At Senate Hearing On COVID-19 And CARES Act
WASHINGTON, DC - NOVEMBER 30: Federal Reserve Board Chairman Jerome Powell waits for the beginning of a hearing before Senate Banking, Housing and Urban Affairs Committee on Capitol Hill November 30, 2021 in Washington, DC. The committee held a hearing on "CARES (Coronavirus Aid, Relief, and Economic Security) Act Oversight of Treasury and the Federal Reserve: Building a Resilient Economy." (Photo by Alex Wong/Getty Images)

The chief of the US Federal Reserve today insisted price rises in America should pull back from a three-decade high in the middle of next year despite casting doubt over the central bank’s own inflation forecasts.

Jerome Powell said the Fed expects inflation to fall “significantly” in the second half of next year, while in the same breath saying the central bank is “unsure” about its inflation forecasts.

Inflation in the US is currently running at its highest print since 1990, hitting 6.2 per cent in October.

Powell’s comments come after he insisted the Fed may end its bond buying programme a few months earlier than first planned.

He also said earlier this week it was time to “retire” the word “transitory” to describe inflation.