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Jerome Powell, head of the Federal Reserve (Fed), expressed through a prepared statement to the Congressional Financial Services Committee that the United States labor market is still “a long way off” from the progress the Fed wants before reducing economic stimulus.
The official stated that apart from the fact that the unemployment rate has fallen to 5.9% from its maximum pandemic which was located at 14. 8% , the Fed focuses on target for employment is inclusive where all racial, gender and income groups occur across the country.
Despite the fact that the An official expressed his position on the work environment and its projection, which has been on the rise as the months go by, the central issue that interested legislators was one, inflation. Phenomenon that has negatively impacted the entire American society.
About , the head of the Federal Reserve stated that inflation will remain at high levels for a while, so that “inflation has advanced significantly and will probably continue to be high in the coming months before moderating.”
Powell added that inflation has risen due to various factors, including that the pandemic caused shortages and problems in the supply channel of articles around the world and now produce and transport them falls on the final price for consumers.
The official stated that “inflation will remain anchored near the Fed’s 2% target. Bond purchases and a target interest rate close to zero” will ensure that monetary policy continues to provide a powerful support to the econo mine until the recovery is complete. ”
In the framework of his biannual appearance on the state of monetary policy and the national economy, the The head of the Central Bank remained true to his frequent belief that the current increase is temporary and will be offset when conditions return to normal .
The official stated that the main reason for the rise in prices comes from some industries, such as used cars, which they are sensitive to temporary conditions. But despite the arguments, lawmakers pressed him on current inflation trends.
The fact that the Fed leader has It is reported that the trend in increases will continue to increase is not good news for the US population in general, especially for those who have less and that their salaries, with this trend, lose purchasing power.
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