The Federal Reserve Chairman admitted his concern about the persistence of inflation in the United States
head Federal Reserve (fed), Jerome PowellTuesday, admitted that inflation in the United States more worrying And structural that at the beginning of this year, having confirmed in recent months that it was something”transient“.
“Yes, I think it is fair to say that it is.Powell responded on the Senate Banking Committee when asked about it by a lawmaker If the current inflation is more worrying and structural now than it was a few months ago.
In addition, Powell said that problems Suppliers In the United States, which is one of the main reasons for high inflation, “Not only did it not get better, it got worse in some cases.” “Constraints on supply chains are at the center of inflation and it got worse‘, he confirmed.
Thus, Powell admitted in his statement to the senators that Inflation is likely to remain high in the coming months before it calms down. In this sense, the Federal Reserve Chairman announced that he will increase interest rates “If persistent inflation becomes a serious concern.”
As the economy continues Reopen And Expenses are refunded, we are seeing upward pressure on prices, Especially due to the stagnation of supply in some sectorsPowell added.
Annual inflation in August in the US fell by a tenth, in 5,3%, at the first sign of cooling Prices are after months of continuous increases, although they are still at very high levels.
employment July, the bank led by Powell put the estimated 2021 growth in the US economy at 7% And year-end inflation in 3.4%.
On the other hand, Powell made it clear that the US central bank can start with it $120 billion cut regarding monthly bond purchases at the next monetary policy meeting scheduled for November 2-3.
At its last meeting last week, the Fed left interest rates unchanged, between 0% and 0.25%, but hinted that it could start “Soon” withdraw monetary stimulus by reducing the volume of monthly bond purchases.
(With information from EFE)