[ad_1]
Vehicles drive past the Marriner S. Eccles Federal Reserve Building in Washington, DC, USA.
Photographer: Al Drago / Bloomberg
Photographer: Al Drago / Bloomberg
Every morning we deliver world news that you want to follow up on before starting your day. Click here to subscribe to the Bloomberg newsletter.
Federal Reserve Board of Governors (FRB) Chairman Jerome Powell said prices will rise this year as the novel coronavirus epidemic is expected to recede and allow Americans to go out and consume. But he said the risk of unwanted inflation is not great.
“We expect inflation to increase throughout the year,” Powell told the House Finance Committee. He cited dragged demand, supply chain disruptions and base effects compared to last year, when inflationary pressures were extremely weak. Still, he said, “I think the impact on inflation is most likely not particularly great and it will not be sustainable.”
Fed Chairman Jerome Powell testifies in the House Finance Committee
Powell attended congressional testimony with Treasury Secretary Janet Yellen as part of Congressional oversight of the government’s response to the new Crown. The two will testify at the Senate Banking Commission on the 24th.
The US economy is expected to grow rapidly in the coming months due to accelerated vaccination with the new coronavirus vaccine and additional economic measures worth 1.9 trillion dollars (about 206 trillion yen).
Participants of the Federal Open Market Committee (FOMC) announced last weekThe quarterly economic forecasts forecast a growth of the gross domestic product (GDP) of 6.5% this year. Inflation indicators, which the authorities are focusing on, are expected to rise to 2.4%.
The FOMC continues to expect interest rates close to zero price increases in the short term (2)
“In the last quarter century, there has been strong disinflationary pressure on the economy around the world,” Powell said. “I don’t think a temporary increase in prices due to a temporary increase in spending will drastically change that,” he said.
The Biden administration is considering a long-term economic program of up to 330 billion yen-related parts (1)
Original title:Powell expects an increase in inflation, says it won’t get out of control （抜 粋）
(Upgrade by adding video and the fourth paragraph and beyond)
