Fed chairman says US inflation more permanently than expected-strategist forecast a market correction of 10 % Twittersmash
Fed chairman says US inflation more permanently than expected-strategist forecast a market correction of 10 % Twittersmash
The Americans not only worry about future inflation, but also have to struggle with dwindling purchasing power in real time. Meanwhile, the chairman of the Federal Reserve, Jerome Powell, is planning to speak to the Senate banking committee on Thursday and to discuss inflation on Thursday. In the pre-published remarks from Powell's speech, the Fed chairman found that the recent increase in inflation could last longer than the central bank expected.
FED chairman Jerome Powell: "Inflation effects were larger and longer than expected"
If you read reports from news agencies such as CNN or Axios, the reporter would probably do it Say something How "Perhaps we can ignore the inflation expectations". While CNN admits that the inflation is there, reporter like Dana Peterson Covid Delta variant, chip shortage, labor costs and rental costs. Similar to the opinions of politicians and Fed board members, Peterson from CNN concludes that "the inflation pressure will probably continue for a while".
Jerome Powell's speech on Thursday reflects a similar message because he explains to the Senate Banking Committee in his pre -published explanations that the increase in inflation could last a little longer. "Inflation is increased and will probably remain in the coming months before it weakens," Powell commented from the statement published on Thursday. The central bank boss blames supply chain problems and adds further:
Since the economy is recovering and the expenses attract again, we see an upward pressure on the prices, especially due to delivery bottlenecks in some sectors. These effects were greater and longer than expected, but they will let up, and inflation is expected to fall back towards our long-term 2 percent goal.
long -term market bull forecast a 10 %market correction, Fed says that "it will do everything to support the economy"
At the same time, the "long-term market bull" Phil Orlando said on Monday that "a 10 %correction could take place over the next five weeks or so". Federated Hermes' chief market strategist explains that there is currently a lot of uncertainty in relation to “fiscal and monetary policy”. "We see how the events are developing and developing here," said Orlando during an interview on the CNBC show "Trading Nation". The market strategist added:
Inflation runs much hotter than the Fed on the monetary policy side and the government has predicted. We think that inflation is sustainable. This will result in the US Federal Reserve changes their monetary policy much faster in terms of their rejuvenation and their interest increases than they originally told us.
The news follows the recently published explanations of the FED in the past week and some members of the FED board of the FED board questions for your share buying in 2020. Fed boss Jerome Powell was also criticized for possession of bonds of the same type that last year during pandemy bought. Powell's pre-published remarks from the upcoming testimony of the Senate Banking Committee, of course, note that the central bank will always intervene until the US economy has recovered.
"We from the Fed will do everything in our power to support the economy until recovery has been completed," emphasized Powell's pre -published comment.
What do you think of the upcoming speech that Powell will stop in front of the Senate banking committee on Thursday? Let us know your opinion on this topic in the comments below.
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