Opening comments from Fed Chairman Powell via Investing.com



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© Reuters

Investing.com – In his testimony to the House Banking Committee on the semi-annual fiscal policy report, Federal Reserve Chairman Jerome said inflation was “low” and the Fed was sticking to it to its accommodating monetary policy.

Powell shed light on the U.S. job market and said he still needs more help.

The Fed chairman’s comments come despite the sharp rise in yields on US Treasuries, which heightens market concerns about the negative spillover effects of inflation that could follow very high valued stocks.

“The economy is far from our vision for employment and inflation targets, and it will likely take some time to make significant progress,” said Powell.

Powell added: “The Fed is committed to using the various tools at its disposal to support the economy and to ensure a rapid recovery from its difficult times.”

Powell’s pre-prepared speech didn’t address the very high yields issue, bringing the difference between 30-year and 10-year Treasury yields to 44 points.

“The epidemic has had huge effects on inflation,” said Powell. On the budget, he said inflation is not a threat.

“After the huge declines in economic indicators last spring, consumer price indexes only partially recovered during the year. However, some sectors were affected by the epidemic, and price increases have always the slightest impact. “

Over the past year, the Fed has shifted its policy around inflation targets, not setting the target, but instead setting a range within it for the target, to compensate for periods of decline.

Regarding the change, Powell added: “This change ensures that monetary policy is not tightened just because of an improving labor market.”

Regarding the assessment of the state of the economy, Powell added that the recovery is unbalanced and far from over.

“While we should not be aware of the current challenges, recent developments indicate improvement expected later this year. Especially with the advancement of vaccination programs and the rapid return of business to normal.”

About the current time:

“Right now, we need to follow the advice of health experts, adhere to social distancing and wear masks.”

Powell went on to talk about minority rights and the fact that the economic recovery has yet to affect minority communities.

Regarding the housing sector, he said it had recovered strongly, while commercial and industrial activity had improved.

Powell said the incentives and facilities provided by the Federal Reserve and Congress are what have helped this development.

During that time, it fell below $ 1,800 an ounce and then rebounded, but far from session highs.

While losing nearly 180 points, in a bloody session for transition between sectors and liquidation of stocks. The American is always green.

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