The effects of the inflation outbreak as a result of the epidemic continue to last longer than expected, Federal Reserve chairman Jay Powell told U.S. lawmakers at a joint meeting with Treasury Secretary Janet Yellen on Tuesday.
Asked about the Senate banking committee meeting at 10 a.m. Eastern Time, Powell acknowledged that the economy was booming, but warned of the risk that inflation could last longer than expected if Delta coronavirus divergence also led to a chain reaction.
“As the openings continue, the difficulties, enrollment and other difficulties may be greater and more enduring than expected, which puts them at risk of rising prices,” he said in preparation for a statement released Monday.
“If the rise in inflation could be a major problem, we can respond and use our resources to ensure that inflation moves in line with our goal.”
He added that inflation would remain “high” in the coming months and return to the central bank’s target of 2%.
His comments came at a recent financial meeting last week, at which the Fed mark will soon begin to reduce, or “shake”, $ 120bn a month to buy things that were set up last year and promise to continue until it looks “far ahead” at a 2% price increase and big work.
A report released last week also said that many Fed officials believe that interest rates could be justified next year, at least three of which were written by the end of 2023.
Yellen, who is also due to testify Tuesday, also added comments to lawmakers that she had “financial” hope “and hopes to return to full-time employment by 2022.
However, he warned of the potential dangers posed by the Delta reform, which has reduced consumer interest and curtailed business.
He said: “We are in the midst of a weak but fast recession to the economic downturn caused by the epidemic.” “While our economy continues to grow and take up a large portion of the jobs lost in 2020, major challenges from the Delta diversity continue to undermine the speed of recovery and pose significant barriers to strong economies.”
He also called on Congress to raise the debt to avoid what he said would be “dangerous to [the] economy ”, not only warned of the economic crisis and the economic downturn, but also undermined US debt.
The warning comes after a U.S. mortgage bill failed to get 60-year-old voters to the Senate on Monday evening, as Republicans in the upper house of Congress voted to reject the bill. Democrats, who have been in control of the Senate for a while, are now under pressure to raise their own debt and prevent the government from closing on Friday 12.01am.
Top Fed officials have it was warned lawmakers with disastrous consequences if there is no consensus. On Monday, John Williams, President of the Federal Reserve Bank in New York, said women could be “too scared” to think “I have to give up things”, which he said could affect what happens in the markets “.
Federal Reserve Governor Lael Brainard on Monday also urged lawmakers to take action, saying Congress “should intervene”, while Powell last week described the potential for “serious damage” if the US did not meet its obligations.