Latest News

Powell Testimony to Stress Fed Action to Prevent ‘Entrenched’ Inflation

0
© Reuters.

By Yasin Ebrahim

Investing.com – Federal Reserve Chairman Jerome Powell will stress that the U.S. central bank will continue to use its tools to support a strong labor market and prevent the risk of elevated for longer inflation, according to prepared remarks ahead of his testimony Tuesday for the Senate Banking Committee.  

“We will use our tools to support the economy and a strong labor market and to prevent higher inflation from becoming entrenched,” Powell will say in prepared remarks at his confirmation hearing.  “I would like to thank President Biden for nominating me to serve a second term as Chair of the Board of Governors of the Federal Reserve System.”

The Fed chief will talk “sustained improvement” in the economy despite the ongoing pandemic, which has “given rise to persistent supply and demand imbalances and bottlenecks, and thus to elevated inflation.” 

“On the eve of the pandemic, the U.S. economy was enjoying its 11th year of expansion, the longest on record … [but] this attractive picture turned virtually overnight as the virus swept across the globe,” according to the prepared testimony. 

The remarks came just days ahead of the U.S. inflation report due Wednesday, expecting to show that the pace of inflation increased at its fastest pace in December since 1982.

Against the backdrop of elevated inflation, bets on the a more aggressive pace of rate hikes have continued to ratchet up, with Wall Street consensus now leaning toward four rate hikes this year, with the first hike as soon as March. 

“We know that high inflation exacts a toll, particularly for those less able to meet the higher costs of essentials like food, housing, and transportation. We are strongly committed to achieving our statutory goals of maximum employment and price stability.” Powell is expected to say in testimony.

 

Powell Testimony to Stress Fed Action to Prevent ‘Entrenched’ Inflation

Disclaimer:Fusion Mediawould like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Update: Framing Lumber Prices Up 75% Year-over-year

Previous article

Wall Street banks see four U.S. hikes in 2022, but inflation is a wild card

Next article

You may also like

Comments

Leave a reply

Your email address will not be published.

More in Latest News