Chairman Jerome Powell said Tuesday that the Federal Reserve has a different understanding of the term “transitory inflation” than most Americans, suggesting that the term be “retired.” Powell and Treasury Secretary Janet Yellen spoke before the Senate Banking, Housing, and Urban Affairs Committee on Tuesday, the first of two days of evidence on the Coronavirus

Anticipated inflation is the percentage increase in the level of prices that people in an economy expect over a particular period. Consider a loaf of bread or any form of consumer staple that you buy on a daily basis. It’s safe to assume that the cost of that staple will rise over time. Bread probably

Stocks have a good chance of keeping up with inflation, but not all equities are made equal when it comes to doing so. Inflationary periods, for example, tend to batter high-dividend-paying stocks like fixed-rate bonds. Is the stock market immune to inflation? Returns on the Stock Market and Inflation Nominal returns minus inflation equals real

Interest rates are its primary weapon in the fight against inflation. According to Yiming Ma, an assistant finance professor at Columbia University Business School, the Fed does this by determining the short-term borrowing rate for commercial banks, which subsequently pass those rates on to consumers and companies. This increased rate affects the interest you pay