AGI – The US economy is in “continuous improvement but there are still risks and the Fed “will do everything to support the recovery”. As for inflation, it is still on the rise but its growth is “temporary” and destined to run out. These are the main lines of the speech that the president of the Fed, Jerome Powell, will make today at the hearing before the Financial Services Committee of the House.
Powell, according to reports, will argue that the US economy has continued “growing this year at the fastest pace in decades” and that the US job market “is improving at an uneven pace.” However Powell also warns of the risks that still loom over the recovery: “The pandemic continues to pose risks to the economic outlook. Advances in vaccinations have limited the spread of Covid-19 and will likely continue to reduce the effects of the crisis. However, the pace of vaccinations has slowed and new strains of the virus remain a risk. Continued progress on vaccinations will support a return to more normal economic conditions. ”
Also for Powell “inflation has increased significantly in recent months. This reflects, in part, the very low readings since the start of the pandemic; the transfer of past oil price increases to consumer energy prices; the rebound in spending as the economy continues to reopen; and supply bottlenecks, which have limited how quickly production in some sectors can respond in the short term. As these transient supply effects diminish, inflation should return towards our long-term target. “
So Powell assures: “We at the Fed will do everything possible to support the economy for as long as it takes to complete the recovery. “.