Powell endorses the Fed’s view of the fading inflation hurdle
Written by Yassin Ibrahim
Investing.com – Federal Reserve Chairman Jerome on Tuesday reiterated the Fed’s view that any hike in inflation this year would be “one-off”, but stressed that the central bank has the tools to ensure that inflation is kept steady at 2%. Targeting.
In his testimony before the House Financial Services Committee in Washington on the economy, Powell said that the expected sharp jump in inflation with the reopening of the economy “will not be sustained,” but will prove to be a “one-off” increase after years of global deflationary pressures. In response to what was left by the Covid virus.
In prepared remarks, Powell acknowledged that the recovery had progressed more quickly than expected, but stressed that the Fed “will continue to provide support to the economy it needs as long as the sectors of the economy are the most affected.” Because of the re-emergence of the virus, and the increase in social distancing, which makes it remain vulnerable. “
In joint testimony alongside Powell, US Treasury Secretary Janet Yellen, meanwhile, is questioned about the impact of the administration’s plans to raise taxes on jobs and workers’ wages. Yellen said the impact of corporate tax increases on the impact on prices, and consumers is “very unclear” from the current studies, but added that the money raised from taxes will help finance the government spending plan including the infrastructure package and create quality jobs in the economy.
As for the asset valuation, Powell Willin disagreed somewhat. Yellen said asset prices were “high”, while Powell said the outlook was mixed as some assets were “somewhat elevated”.
The S&P 500 is down 0.2%, while the US 10-year yield is down to 1.64%. Today, due to the increasing power of. European fears about the outbreak of the third wave of Corona virus collided with prices, pushing it down
Remarks by Treasury Secretary Janet Yellen: