Fed Chairman Jerome Powell speaks out after mixed data By Investing.com

Investing.com – Markets were mixed with mixed economic indicators giving mixed signals on the health of the US economy and the strength of its recovery. On Friday July 6, the jobs report showed that the US economy created 943,000 jobs. This sparked a wave of comments from Fed chiefs that monetary policy should tighten as soon as possible as the economy no longer needs support, with growing concerns about high inflation.

It fell sharply, with the rise of the dollar index, and the American indices: Jones, and the S&P 500, were breaking records.

At the start of the week following the data, the gold was exposed to flash crush. However, that didn’t last long, with additional data showing serious weakness in U.S. consumer confidence, with the Consumer Confidence Index posting its worst performance in decades and gold rebounding, rising. of 50 in one session.

Retail sales data released today showed a sharp drop to -1.1%, compared to an expected -0.3%.

Follow the report for live updates and the most important speech from Federal Reserve Chairman Jerome:

Powell talks about the challenges the world has faced, praising the performance of teachers during the pandemic and their insistence on communicating with students. He thanks the parents and students who suffered during the pandemic, which caused such uncertainty.

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The epidemic has changed the economy, and only time will prove what the epidemic has changed. And the Fed is monitoring the economy’s transition.

The Fed talks about the speed of vaccinations and the outbreak of the Delta strain that is spreading to parts of the outbreak.

Powell says businesses and individuals are adjusting and coping with the outbreak, but we don’t yet know what the Delta strain will do.

Powell believes some have resorted to working from home and believes the epidemic will change the nature of work, with an increase in home work.

Powell talks about the increase in door-to-door shopping and the restaurant industry’s adaptation to the increase in door-to-door deliveries, and uses it as an example of the nature of the behavioral changes occurring around the world.

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Powell believes that with the changes in behavior, some industries are experiencing a sharp decline in employment and employment in those industries will not return to where they were in the past, and thinks some of these people will struggle. to find work again in light of the behavioral and technological changes that have occurred in the entertainment and restaurant industries.

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Powell believes that there are millions of unemployed and that part of the economic recovery is still hampered.

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Urgent market update

The Dow Jones lost more than 500 points in a climate of uncertainty.

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Powell believes the Fed acted quickly by cutting interest rates quickly, which has helped the economy grow by boosting economic activity, as low interest rates make it easier to do transactions.

Powell believes that while investors around the world sold their assets to get their money in the form of cash, the Federal Reserve stepped in to save the global investment system, which helped avert financial catastrophes.

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He believes the tools used by the Fed are time-limited, and now he talks about the approaching time to tighten monetary policy. Some of these tools are intended for times when crises are most acute.