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Fed Powell promises to prevent inflation from taking root

Federal Reserve Chair Jerome Powell told Congress on Tuesday to take steps to ensure that the higher inflation seen in the past year is not allowed to take root deeply in the economy. I will tell you what to do.

“We use our tools to support the economy and strong labor markets and prevent higher inflation from taking hold,” says Powell. According to a copy of his prepared remarks To the Senate Banking Commission released on Monday.

The Panel is holding a second four-year hearing on President Joe Biden’s nomination of Powell.

Powell is supported from both sides of the aisle, and experts believe he will be confirmed. However, Powell may face some criticism of last year’s inflation surge. The chairman of the Federal Reserve Board has emphasized for months that inflation will be temporary.

read: Four Mistakes by the Fed Powell — From a Former Insider

The Fed is expected to design a remarkable pivot and rapidly break away from the simple policy stance that has been in place since the pandemic began in early 2020.

JPMorgan Chase and Company’s Jamie Dimon said on Monday that he expects to raise rates more than four times this year.

read: “If you’re lucky, the Fed can design a deceleration,” says Dimon.

Powell said the Fed knows that high inflation will hurt the poor who are seeing rising prices for essentials.

“We are strongly committed to achieving our statutory goals of maximum employment and price stability,” Powell said.



Closed but off session lows About the fear of higher interest rates. High-tech heavy Nasdaq
+ 0.05%

There was a slight increase.

Yields on 10-year government bonds

Before withdrawing, we achieved a fresh 52-week high of 1.779%.

Fed Powell promises to prevent inflation from taking root Fed Powell promises to prevent inflation from taking root

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