Fed Chairman Jerome Powell once again said that he thinks the sharp rise in inflation seen so far this year will dwindle away. Do you agree?
Federal Reserve Chairman Jerome Powell on Wednesday once again said that he thinks the sharp rise in inflation seen so far this year will fade away.
On Tuesday, the U.S. June consumer price index rose more than expected, jumping by 0.9%, and the rate of inflation in the 12 months ended in June climbed to 5.4% from 5%. The last time prices rose that fast was in 2008, when oil hit a record $150 a barrel. The Fed’s forecast expects its favorite measure of inflation, the personal consumption expenditure price index, to fall from 3.4% this year to 2.1% in 2022 and 2.2% in 2023.
“While reaching the standard of ‘substantial further progress’ is still a ways off, participants expect that progress will continue,” Powell said. As he had said at his press conference in June, Powell said the Fed would be prepared to shift policy “if we saw signs that the path of inflation or longer-term inflation expectations were moving materially and persistently beyond levels consistent with our goal.”In his testimony, Powell said the labor market has improved “but there is still a long way to go.” Participation in the labor market has not moved up from the low rates of the pandemic, he noted.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Inflation has 'increased notably,' but Fed won't alter its policies yet, Powell saysInflation 'will likely remain elevated in coming months before moderating,” the Federal Reserve Chairman said.
Read more »
Fed Chair Powell Changes Tune On Inflation—Says Higher Prices Could Remain For MonthsPowell also says a full recovery is still 'a ways off.'
Read more »
Fed Chair Powell charged with convincing Congress this week that easy policy is still neededFederal Reserve Chairman Jerome Powell speaks to Congress this week in an update on monetary policy.
Read more »
Powell says the Fed is still a ways off from altering policy, expects inflation to moderateFed Chair Powell says the central bank’s benchmark of “substantial further progress” toward full employment and stable prices remains “a ways off.”
Read more »
Treasury yields ebb lower ahead of Fed Chair Powell testimonyU.S. Treasury yields ebbed lower on Wednesday morning, ahead of Federal Reserve Chairman Jerome Powell's testimony in front of Congress later in the day.
Read more »
Seven months and ticking, the case for keeping Powell as Fed chair buildsWith the U.S. Federal Reserve in the midst of a complicated policy shift, central bank watchers see a renomination of Jerome Powell to a second 4-year term as Fed chief as increasingly likely, a view bolstered by Powell's standing within the Biden administration and a closely divided Senate.
Read more »