New comments from Fed chairman via Investing.com

Powell agrees with Fed’s view on falling inflation stumbling block

Written by Yassin Ibrahim

Investing.com – Federal Reserve Chairman Jerome on Tuesday reiterated the Fed’s view that any rise in inflation this year will be “one-off,” but stressed that the central bank has the tools to guarantee that inflation remains stable at 2%. Targeting.

In his testimony to the House Financial Services Committee in Washington on the economy, Powell said the expected sharp rise in inflation with the reopening of the economy “will not be sustained,” but will prove to be a “one-off” increase after years of global deflationary pressures. In response to what has been left behind by the Covid virus.

In prepared remarks, Powell acknowledged that the recovery has progressed faster than expected, but stressed that the Fed “will continue to support the economy it needs as long as the sectors of the economy are most affected.” Due to the reemergence of the virus and the increase in social distancing, which makes it vulnerable. “

In joint testimony alongside Powell, U.S. Treasury Secretary Janet Yellen, meanwhile, is asked about the impact of the administration’s plans to raise taxes on jobs and workers’ wages. Yellen said the impact of corporate tax increases on the impact on prices, and consumers is “very unclear” from current studies, but added that the money coming from taxes will help finance the government’s spending plan including the infrastructure package and create quality jobs in the economy.

As for asset valuation, Powell Willin disagreed somewhat. Yellen said asset prices were “high”, while Powell said the outlook was mixed as some assets were “somewhat high”.

The S&P 500 is down 0.2%, while the US 10-year yield is down to 1.64%. Today, due to the growing power of. European fears over the third wave Corona virus outbreak have hit prices, pushing it down

Remarks by Treasury Secretary Janet Yellen: