Powell intentionally adopted a 'transitory' inflation framing in 2021-2022 as justification for the Fed's average inflation targeting framework, which allowed the Fed to tolerate overshooting without tightening policy.

factualpending

Speaker

Jason Draho

Evidence Quote

Remember the reason that the Fed was probably harping on that transitory comment is that they had this new average inflationing targeting framework where they're saying we're going to make up for the ills of our sub 2% inflation.

Source

Jeffrey Sherman and Jason Draho: How Should I Be Positioned? | UBS On-AirDoubleLine Capital
Created: 8/12/2026, 10:36:49 PM

My Notes

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