Re: Economic and jobs news thread
Posted: Wed Jul 14, 2021 6:41 pm
Federal Reserve Chair Jerome Powell Says Inflation, Though Elevated, Will Likely Moderate
by Christopher Rugaber
July 14, 2021
https://news.yahoo.com/powell-says-infl ... 49836.html
Introduction:
Federal Reserve Board chairman Jerome Powell testifies on the Federal Reserve's response to the coronavirus pandemic during a House Oversight and Reform Select Subcommittee on the Coronavirus hearing on Capitol Hill in Washington, in this Tuesday, June 22, 2021, file photo.
Credit:Graeme Jennings/Pool via AP, File
by Christopher Rugaber
July 14, 2021
https://news.yahoo.com/powell-says-infl ... 49836.html
Introduction:
WASHINGTON (AP via Yahoo) — Federal Reserve Chair Jerome Powell suggested Wednesday that inflation, which has been surging as the recovery strengthens, “will likely remain elevated in coming months" before “moderating."
At the same time, Powell signaled no imminent change in the Fed's ultra-low-interest rate policies.
In testimony before the House Financial Services Committee, Powell reiterated his long-held view that high inflation readings over the past several months have been driven largely by temporary factors, notably supply shortages and rising consumer demand as pandemic-related business restrictions are lifted.
Once such factors normalize, Powell said, inflation should ease. Yet the Fed chair did not repeat in his testimony an assertion he made three weeks ago before another House panel, that inflation would “drop back” to the Fed's target of 2%.
The Fed has said it will keep its benchmark short-term rate pegged near zero until it believes maximum employment has been reached and annual inflation moderately exceeds 2% for some time. The central bank's policymakers have said they are prepared to accept inflation above its target to make up for years of inflation below 2%.
Federal Reserve Board chairman Jerome Powell testifies on the Federal Reserve's response to the coronavirus pandemic during a House Oversight and Reform Select Subcommittee on the Coronavirus hearing on Capitol Hill in Washington, in this Tuesday, June 22, 2021, file photo.
Credit:Graeme Jennings/Pool via AP, File