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

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.