Inflation on the rise: Jerome Powell, president of the Federal Reserve, recognizes its increase, but assures that it will mitigate in the long term

The head of the Federal Reserve will give all the details of the actions taken by the central bank to Congress to address the country’s economic emergency and its projections on inflation

Photo: EFE

The president of the Federal Reserve, Jerome Powell, will express before Congress that the United States economy has a behavior of sustained improvement after the negative impact of the Covid pandemic – 19, in addition to the labor market continues to gain ground, but inflation has increased notably in recent months .

This Tuesday the head of the Federal Reserve will have his audience with congressmen, to whom he will provide details on current monetary policy. In addition to this, Powell is not expected to announce the possibility that the central bank will have to accelerate plans to withdraw some economic support due to the faster increase in prices on various products.

The positions of the head of this federal government body were published by the Fed yesterday afternoon. In the information that was released, Joreme Powell made it clear that he considers that the current inflation phenomenon is probably temporary, so that in the coming months generalized increases will begin to stabilize .

The Federal Reserve forecasts on inflation have changed, since a few months ago they projected that inflation would increase by at least 2.4% in 2021, but this forecast was notoriously exceeded, since now it was raised to 3.4%. The Fed also presented its economic growth forecast for the year by placing it at 7% .

Apart from the inflation issue, Powell explained his concern about how uneven the economic and financial recovery is taking place for Americans. In this sense, he pointed out that the lack of employment continues to affect workers who receive lower wages. like African Americans and Latinos .

For this reason Jerome Powell said that “at the Federal Reserve we will do everything possible to support the economy for as long as it takes to complete the recovery.” This position is similar to the idea that the Democrats have pushed from the White House and from Congress, who have asserted that will not stop supporting those who need it most in the country .

In the information released by the Federal Reserve in which Powell is cited, it is stated that its owner considered that employment “should rebound in the coming months” as vaccination against the virus continues. coronavirus and advance the reopening of the economy throughout the United States. Despite this, “the pandemic continues to pose risks,” he added.

Today Powell will testify before the Select Subcommittee of the US House of Representatives on the coronavirus crisis where Republicans and Democrats will be able to question the head of the Fed about the public policies that the central bank has implemented to address the health emergency and how they project economic growth for the coming months.

You may also be interested in: Democrats seek to raise the ceiling on public debt; Republicans want to stop them