Meanwhile, Federal Reserve Chairman Jerome Powell plans to address a banking committee today Senate and discuss about inflation. In the notes published in advance from Powell’s speech, the President Fedu noted the recent increase inflation may take longer than expected Central Bank.
Chairman Fedu Jerome Powell: “The effects inflation were larger and more durable than expected “
If you read news published by news channels like CNN or Axios, the reporter would probably say something like “maybe we can ignore inflation expectations.” While CNN admits that inflation is here, some reporters blame things like the Covid Delta variant, the lack of chips, labor costs and rental costs. Like the views of politicians and council members Fedu, CNN concludes that “inflationary pressures are likely to be with us for some time to come.”
Jerome Powell’s speech reflects a similar message to the Senate Banking Committee in its pre-published statements that growth inflation may persist for a little longer. “Inflation is high and is likely to remain so in the coming months before it eases, ”says Powell. Head central bank blames supply chain problems and adds:
“Because economy As we reopen and spending recover, we are seeing upward pressure on prices, mainly due to supply bottlenecks in some sectors. These effects were greater and more lasting than expected, but will subside and are expected inflation will fall back to our longer-term 2% target. “
Long-term bull in the market predicts a 10% market correction, Fed says he “will do everything in our power to support the economy”
At the same time, “long-term bull in the market” Phil Orlando said on Monday that “there may be a 10% correction within the next five weeks.” Federated Hermes, chief market strategist at the investment company, explains that there is great uncertainty surrounding “fiscal and monetary policy” right now. “We see events unfolding and unfolding here,” Orlando said during an interview with CNBC’s “Trading Nation”. The market strategist continued by delivering:
“Na side monetary policy is inflation much overheated than Fed and the administration prophesied. We think so inflation is sustainably higher. As a result, the Federal Reserve will change monetary policy in terms of reducing them, and theirs interest rate it will grow much faster than we were originally told. “
The reports follow recently published statements Fedu from last week and several members of the board Feduwho have been subject to a purchase inspection shares v in 2020. Chairman Fedu Jerome Powell was also criticized for property bonds of the same type which US Federal Reserve bought during a pandemic last year. Powell ‘s pre – published notes from the Senate Banking Committee’ s forthcoming statement state that Central Bank always hits until american economy does not restore.
“My ve Fedu we will do everything in our power to support the economy for as long as it takes to complete the recovery, “said Powell’s pre-published comment.
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