Powell tells Parliament that the Omicron variant creates disadvantageous risks to the economy and complicates inflation forecasts.
KEY POINTS
- Federal Reserve Chair Jerome Powell believes that Omicron is a variant of the COVID-19 pandemic. Recent increase in coronavirus outbreaks This threatens the US economy.
- New inequality concerns "encourage people to work directly, slowing labor market growth and disrupting sales," he said in a statement.
- Treasury Secretary Janet Ellen will join Powell on Tuesday and testify in front of the Senate Banking Commission on Tuesday.
Federal Reserve Chairman Jerome Powell believes the spread of the omecron coronavirus and the recent rise in coronavirus cases pose a threat to the U.S. economy. And affects economic instability.
Powell told the Senate on Tuesday that "the recent escalation of problems with COVID-19 and the emergence of the Omicron model has become a major threat to jobs and economic activity." Anxiety can prevent people from doing the right things. Labor market downturn and supply disruption. "
Economy
Powell will be joined by Finance Minister Janet Yellen on Tuesday to testify before the Senate Banking Committee. Report to the Federal Reserve and Treasury Quarterly Congress. It is part of the Economic Assistance Act March 2020, which extends the central bank's emergency response program.
The central bank announced the sale of Powell on Monday night.
The Federal Reserve provides specific information about economic value. Although it is difficult to see the stability and impact of supply constraints, he said, "the main factors affecting inflation will remain until next year."
He said a number of forecasts, including a few federations, point to a "sharp" decline in inflation next year due to the size of the supply chain.
Powell's comments came just days after investors sold US assets for fear of new codes and the Federal Reserve's future interest rates. Friday and Sunday. The market is recovering on Monday.
Traders jumped on Friday about the security of financial bonds amid the potential impact of the Omicron coronavirus release and the possibility of their future feed rate cuts.
Last week, about 25% of investors thought the Fed would keep interest rates close to zero in June 2022, another 75% said the central bank would raise the Fedwatch CME Group's instruments at least once. . The spread of new options has already changed, with about 35% of investors now promising the Fed to stay close to zero by 2022.
The 10-year Treasury bond yield fell 15 points on Friday from 1.5% on Friday to 1.49%. As bond yields decline, so do their prices.
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The Federal Reserve cut its lending program earlier this year, but the central bank has just begun saving $ 120 billion from monthly purchases of government and mortgage bonds. At a recent monetary policy meeting, the central bank decided to reduce asset purchases on a regular basis amid a massive supply-side push and inflation rate in the United States since the 1990s.
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