Fed Chair Jerome Powell’s New Stance on Inflation

US Federal Reserve Chairman Jerome Powell, who has got a second four-year term, now wants to retire the word ‘transitory’ for higher inflation, given US retail inflation is actually turning out to be more persistent. Powell’s new line is creating a flutter. New fund flows into India could slow down and there could be dollar outflows, too, due to higher interest rates in the US. Already, the rupee is depreciating. Hard times ahead?