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Powell warns Congress that inflationary pressures may last longer than expected

Federal Preparatory Commission President Jerome Powell warned Washington legislators in a statement Tuesday that the cause of the recent rise in inflation could last longer than expected.

In a speech to the Senate Banking Commission, the Central Bank chairman said economic growth was “continuing to strengthen” but faced upward pressure on prices caused by supply chain bottlenecks and other factors. rice field.

“Inflation is rising and is likely to continue to rise in the months before it eases,” Powell said. “As the economy resumes and spending continues to recover, supply bottlenecks, especially in some sectors, are putting upward pressure on prices. These effects are greater than expected and last longer, but they are. The same goes for softening and inflation. It is expected to recede towards the long-term 2% target. “

This statement is part of the mandatory testimony that Powell must submit to Congress regarding the financial response of the federal government. Covid-19 PandemiNS. He will talk to the House Financial Services Commission on Wednesday.

Following last week’s meeting, the federal government I will start pulling back soon About some of the stimuli it provided during the crisis.However, authorities say that the reduction in monthly asset purchases Not the same as the looming interest rate hike..

“We, the federal government, will do everything we can to support the economy until the recovery is complete,” Powell said.

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Powell warns Congress that inflationary pressures may last longer than expected

Source link Powell warns Congress that inflationary pressures may last longer than expected

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