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Powell to Flag 'Upside Risks' to Inflation in Testimony on Hill

Published 09/27/2021, 04:35 PM
Updated 09/27/2021, 04:54 PM
© Reuters.

© Reuters.

By Yasin Ebrahim

Investing.com - Federal Reserve Chairman Jerome Powell is expected to highlight "upside risks" to inflation as bottlenecks, hiring difficulties, and other drivers of price pressures continue, but will continue to suggest these pressures will prove transitory, according to prepared remarks ahead of his testimony due Tuesday for the Senate Banking Committee.     

"As reopening continues, bottlenecks, hiring difficulties, and other constraints could again prove to be greater and more enduring than anticipated, posing upside risks to inflation," according to the testimony.  While these effects have been "larger and longer lasting than anticipated, but they will abate, and as they do, inflation is expected to drop back toward our longer-run 2 percent goal."

If, however, the prices pressures prove to be more sustained than expected, and become a serious concern, the Fed would use its "tools to ensure that inflation runs at levels that are consistent with our goal," Powell will say in prepared remarks. 

On the labor market, Powell is expected to say that factors related to the pandemic, such as caregiving needs and ongoing fears of the virus, should "diminish with progress on containing the virus."

Latest comments

transitory my ********
Powell not a teller of Truth
Energy rose 500% and he ignores it... shhhh. don't ask. don't tell.
Inflation will be a Chronic illness disease transitorily
No way… really?! Unbelievable!LMAO!
Powell must think no one goes to the grocery store. lies on top of lies.
I am Nepal
keep looping saying inflation, then say no pressure on Friday, you looping liar
pathetic "transitory" concept...
more free money 💰 please ..so I can buy more motorcycles
Shut up and buy gold people. It’s called the financial system and has been there for ages. If you read something, you would know how it works. Trade accordingly. Be happy the fed is aiming for high inflation. If not the USA would go bankrupt and the dollar will fall
He gonna open a bakery soon near you.
As time goes by, He keeps adjusting nicely his own rope around his neck.
I agree!
nice
Blame everything else but your monetary policy amd massive money printing for inflation. You are a Genius! Lol
How are you doing
can't have an organic market as long as the sec gives big money near omniscient data.
I got to get myself a dictionary
whatever he says are lies....fed chairs under investigation are exiting like bird droppings are creation the biggest bubbles in mankind's history...
yes you are right.. he and the fed almost a hundred year manipulating financial all nation in the world...
This POS has been dumping 6B PER DAY into the market for MONTHS to make this administration look good! Send these pukes down the road and let us have an organic market again!
Wages have gone up 20 percent to try to get people to work. Those wage increases aren't transitory. Inflation is 8 percent and he is out of his mind.
They ran out of free money so wages will drop to value since it will be work or don't eat vs now work or survive on 105% of your old wage
For last 5 years rent is doubled ( from 800 to 1600 , US midwest) , but salaries are not. Many jobs are open, but salary offered is not enough  on current rental market.
Kaplan should let the public know his positions early on, since he obviously uses his position to capitalize on insider trading. That would be a better guage of the market, funny how that piece of “@&$ dumped his shares before the dip so prople would not think he was as crooked as the rest of them. Oh wait buy low sell high. As long as you are an offical nothing is illegal. Its just another day in the office.
He keeps printing new money to satisfy the equities and bond markets. Our nation will begin to pay the price in a few months. We will see some big inflation numbers before this is over ... especially with the Chinese economy collapsing slowly
Powell: “Wages and production in the United States continue to stagnant. But on the upside, we have modest inflation so most of what people need costs more (flashes a sideways grin) which could, might, sorta kinda make the voting committee start thinking about thinking about tapering bond purchases and raising the overnight rate. This should reassure investors that the Federal Reserve will continue to support the economy providing requisite monetary policy as necessary. In other words, we really have no idea what we’re doing. At all.”
Inflation is permanently transitory.
Powell has been right so far and all the so call experts have been wrong now could he end up being wrong? Time will tell but so far be had been 100 percent right. If he pulls this off without he will be a genoius i hope he does for everyones sake
Kind of right - his statements are correct in his own world, average man's world is a bit different.
Well he is looking out for average guy he wants the wages to rise. He is more worried about that than the other metrics which is what all the pundits are upset about. Like i said time will tell but i think he gets a bad rap when so far he has done a great job.
To me, as an average man, it's not about the amount of dollars, but about the purchasing power of my wage. Money printing will increase the amount of $ a bit, but will steal its purchasing power. To make things worse, the purchasing power of my savings goes puff too.
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