Most Dangerous Thing Said Jerome Powell By Investing.com

By Kargwan Cruz

Investing.com – The institution is on the sidelines because it came to revive the economy after the coronavirus spread, the Fed chairman said, and Powell has said these tools will remain in place during times of crisis .

“As the emergency recedes, we need to put these tools away. We are putting them aside for now,” Powell said in a meeting yesterday with teachers and students.

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Although Powell did not mention monetary policy, it is expected that during the last quarter of the year, the Fed will begin to reduce its monthly bond buying program, which has been in place since the year. last as a strategy to stimulate economic recovery.

Delta voltage and recovery

However, he clarified that there was still a need for the United States to return to the indicators it had before Covid, said Powell: “The US economy has not yet returned to pre-pandemic levels. “

He reiterated that further recovery is still needed. The number of unemployed in the United States is around nine million, a far cry from the 5.7 million active jobless that were recorded before the pandemic.

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“Millions of people in service sector jobs are still unemployed, and this is part of the recovery that is not yet over,” the official said.

As for the accelerated rise in delta variable infections, Powell said it is not yet possible to determine whether this will affect the economy, but the new strain is undoubtedly disrupting the pace of the recovery.

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In addition, the pandemic continues to cast a shadow over economic activity. “I still cannot declare victory,” said the official.

He added: “It looks like the virus will continue in our lives for some time, and it is not clear whether the increase in the delta type of the Corona virus will have an impact on the economy.”