Powell reaffirmed the Fed’s plan to cut longer interest rates in his testimony
Written by Yassin Ibrahim
Investing.com – Federal Reserve Chairman Jerome will repeat the central bank’s plan to support the recovery “whatever it takes” as the economy remains below pre-epidemic levels, according to his testimony prepared before Congress on Tuesday.
In his testimony, Powell will admit that the recovery has progressed more quickly than expected, but stressed that the Federal Reserve “will continue to provide the economy with the support it needs, no matter what it takes … as a number of sectors in the economy are severely affected by the resurgence of the virus, and social divergence.” The biggest is to keep the economy weak, “according to his prepared remarks.
“The recovery has progressed at a faster pace than expected overall and appears to be consolidating. This is due in large part to the unprecedented fiscal and monetary policy measures I mentioned, which have provided essential support to families, businesses and communities.”
The labor market, in particular, remains a concern for the Federal Reserve, with the unemployment rate and the labor participation rate lagging behind pre-pandemic levels.
“The unemployment rate – which is still high at 6.2 percent – reduces the size of the shortfall, especially since participation in the labor market is still significantly below pre-epidemic levels,” the statement said. “We are committed to using our full suite of tools to support the economy and to help ensure that the recovery from this difficult period will be as strong as possible on behalf of communities, families and businesses across the country.”
The Fed Chairman will also commend the success of the emerging central bank lending programs that helped avert the credit crunch. “Our programs have served as a pillar of major credit markets and helped restore the flow of credit from private lenders through regular channels,” the statement said.
“Our actions, taken together, helped unlock more than $ 2 trillion in funding to support businesses large and small, non-profit organizations, and state and local governments between April and December. This support, in turn, helped prevent organizations from closing their doors and making employers everywhere. A better position to retain and re-hire workers as the recovery continues. “
Meanwhile, the global record recorded at $ 1,738 an ounce, stable unchanged. While the American is rising near the level of 92.
While it is recovering somewhat after the collapse that took place yesterday, and is now up against the US dollar by 0.75%, but the turmoil of the pound has not ended yet, in light of the huge change in monetary policy by dismissing the governor of the Central Bank, Naji Iqbal, and appointing another.
While US index futures are declining, losing nearly 100 points, after rising strongly yesterday.
Jerome Powell said yesterday, speaking about the fluctuations of digital currencies such as Bitcoin, and about being an alternative to gold and not the US dollar, and the digital currency is now weakening strongly, after its inability to advance again to the level of 62 thousand dollars per currency.
The glittering currency at the moment is the Ripple coin, due to the features of the breakthrough in the case between Labs and the US Securities and Exchange Commission.