US Fed chief says pandemic aid not primary driver of US inflation

24/6/2022 2:29:00 AM

US Fed chief says pandemic aid not primary driver of US inflation

Us Federal Reserve, Jerome Powell

US Fed chief says pandemic aid not primary driver of US inflation

WASHINGTON, June 24 — Federal Reserve Chair Jerome Powell on Thursday downplayed the idea that government pandemic aid was the key factor fueling US inflation, instead blaming a...

Friday, 24 Jun 2022 5:21 AM MYTWASHINGTON, June 24 — Federal Reserve Chair Jerome Powell on Thursday downplayed the idea that government pandemic aid was the key factor fueling US inflation, instead blaming a confluence of global issues including the war in Ukraine.

While stimulus spending was a factor, “a great deal of the price increases that you saw were a matter of supply being unable to meet demand” and “when demand hits fixed supply, what happens is prices go up,” Powell told lawmakers.US inflation has surged to a 40-year high, picking up speed in recent months as the fallout from Russia’s invasion of Ukraine has sent fuel and food prices soaring, with gas at more than US$5 a gallon for the first time — putting strain on American families.

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Gold dips after US Fed chief pledged to keep up inflation fightBENGALURU (June 23): Gold prices eased on Thursday (June 23), pressured by expectations of aggressive interest rate increases after the US Federal Reserve (Fed) chief doubled down on the central bank's fight against inflation.Spot gold had fallen 0.2% to US$1,834.33 (about RM8,084.81) per ounce by 0733 GMT. US gold futures eased 0.1% to US$1,835.60. 'With [Fed chair Jerome] Powell pointing out overnight that 1% rises were a real possibility, it's a reminder of that constant pressure on gold prices from rising interest rates,'

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for the latest news you need to know.“The reserves position is sufficient to finance 5.A BENGALURU (June 23): Gold prices eased on Thursday (June 23), pressured by expectations of aggressive interest rate increases after the US Federal Reserve (Fed) chief doubled down on the central bank's fight against inflation.for the latest news you need to know.

Friday, 24 Jun 2022 5:21 AM MYT WASHINGTON, June 24 — Federal Reserve Chair Jerome Powell on Thursday downplayed the idea that government pandemic aid was the key factor fueling US inflation, instead blaming a confluence of global issues including the war in Ukraine. While stimulus spending was a factor, “a great deal of the price increases that you saw were a matter of supply being unable to meet demand” and “when demand hits fixed supply, what happens is prices go up,” Powell told lawmakers.1 times the total short-term external debt,” the central bank said in a statement. US inflation has surged to a 40-year high, picking up speed in recent months as the fallout from Russia’s invasion of Ukraine has sent fuel and food prices soaring, with gas at more than US$5 a gallon for the first time — putting strain on American families.33 (about RM8,084. Opposition Republicans have blamed President Joe Biden’s US$1.3bil), IMF reserves position (US$1.9 trillion (RM8. But when peppered with questions about the prospect of a recession, Powell admitted it could not be ruled out.

3 trillion) American Rescue Plan approved last year for the blistering price increases.4bil), and other reserve assets (US$3.1% to US$1,835. But Powell, who was testifying Thursday before a House committee, and others have noted that inflation is a global issue. Democratic lawmaker Gregory Meeks noted that price hikes were caused mostly by “the supply chain, the China shutdown — the complete shutdown, zero Covid policy, Russia’s war in Ukraine, Covid. Article type: free.” “Isn’t it just a massive storm of everything, is what contributes to inflation and causes it all over the world?” Meeks asked. When asked by a member of the Senate Banking Committee if the Fed could raise rates by as much as 100 basis points at once, Powell said he would never take anything off the table, and officials would make whatever moves as needed to restore price stability. “Pretty much. Policymakers “will need to be nimble” given that the economy “often evolves in unexpected ways,” he said.

That’s a pretty good description,” Powell said in the second day of his semi-annual testimony to Congress. And, some of those factors are “out of our control — for example, the price of oil and most of the price of food. Powell is due to testify again in Washington, DC later on Thursday.” ‘Unconditional’ battle on inflation The Fed for months said price pressures were expected to be transitory, but Powell admitted that in hindsight, the Fed underestimated rising inflation. The US central bank last week announced the sharpest interest rate increase in nearly 30 years and promised additional similar moves as part of its aggressive push to douse the inflation fires. The moves have raised concerns the Fed could trigger a recession in the world’s largest economy. "Gold is crypto for boomers. Powell at the time said more such increases were likely in July.

Powell said the commitment to bringing inflation back down to two percent from 8.6 per cent in May is “unconditional” but he cautioned that the Fed does not have “precision tools” and acknowledged there is a risk of a downturn. Avoiding that “has become significantly more challenging with the events of the past few months, particularly the war,” he said. Spot silver dropped 0. But even if unemployment moves above the current historic low of 3.6 per cent, even a jobless rate of 4..

3 per cent “is still a very strong labor market.2% to US$924.” he noted. And the United States, unlike some other countries, has “a very strong economy” and Fed policymakers “have tools to deal with demand,” Powell said. — AFP Advertisement .23.