Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Powell to Talk Up Job Gains, Transitory Inflation in Testimony on Hill

EconomyJun 21, 2021 04:56PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Yasin Ebrahim

Investing.com - Federal Chairman Jerome Powell is expected to talk up the prospect job gains in the coming months, but reiterate that the recent notable increase in inflation will likely prove transitory amid an even economy, according to prepared remarks ahead of his testimony Tuesday for the House Select Subcommittee on Coronavirus Crisis.

"Since we last met, the economy has shown sustained improvement," Powell will say in prepared remarks. 

On the labor market job, Powell is expected to say that "job gains should pick up in coming months as vaccinations rise, easing some of the pandemic-related factors currently weighing them down."

"The unemployment rate remained elevated in May at 5.8%, and this figure understates the shortfall in employment, particularly as participation in the labor market has not moved up from the low rates that have prevailed for most of the past year."

Inflation, meanwhile, which has been the subject of much debate has "increased notably" in recent months, but will likely prove transitory, according to Powell's testimony.  As "these transitory supply effects abate, inflation is expected to drop back toward our longer-run goal," Powell is expected to say in testimony.

On the overall economy, Powell will acknowledge that indicators of economic activity and employment "have continued to strengthen, and real GDP this year appears to be on track to post its fastest rate of increase in decades," but bely the strength by highlighting that this "rapid growth reflects the continued bounce back in activity from depressed levels."

Powell to Talk Up Job Gains, Transitory Inflation in Testimony on Hill
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (17)
Joel Schwartz
Joel Schwartz Jun 21, 2021 9:22PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The lasting damage of the Federal Reserve’s loose and reckless monetary “policies” will be a longer-term crisis than the pandemic. Powell for prison.
Joey Joey
Joey Joey Jun 21, 2021 9:05PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Powell is basically the market now. It's a joke
John Kochkerian
John Kochkerian Jun 21, 2021 9:05PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Your name is a joke
Pratt Man
Pratt Man Jun 21, 2021 8:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trump's tax cut cost taxpayers $10 trillion and it did nothing. And it will soon be Trump's middle class tax increase because those yeah cuts will expire unless democrats extend it.
Bernard Tan
Bernard Tan Jun 21, 2021 8:22PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yasin the ventriloquist or puppet?
Edward Lewis
Edward Lewis Jun 21, 2021 7:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Love how they started using the term "transitory inflation" as soon as Biden too office. They are not even trying to hide the 1984-style propaganda anymore.
Edward Lewis
Edward Lewis Jun 21, 2021 7:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
*took
Millennial Dip Buyer
Millennial Dip Buyer Jun 21, 2021 7:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lot of economists, even former federal reserve, have been saying that attempting to micromanage the economy as the  Fed is currently doing is futile and does more harm than good.
Show previous replies (1)
Edward Lewis
Edward Lewis Jun 21, 2021 7:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I should add that the concerning characteristic compared to past periods of hyperinflation is that interest rates are already near zero. They have been unable to raise interest rates since they used that tactic to save the stock market after 2008, and the US has been unable to achieve a surplus or even balanced budget in 20+ years.
Millennial Dip Buyer
Millennial Dip Buyer Jun 21, 2021 7:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Edward Lewis Unfortunately, a lot of the population doesn't understand why some programs have to be cut and that loses a party votes.  Nobody cares to learn who pays for it, there are still some fools that think taxpayer money is paying for anything going on right now.  We face a similar problem here in Canada.  One party spends without any consideration for budget and the other is forced to act as an adult and reign it in, yet gets criticized by the uneducated for doing so.
Pratt Man
Pratt Man Jun 21, 2021 7:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What exactly are they doing to micro manage? Nothing has changed in three years.
Pratt Man
Pratt Man Jun 21, 2021 7:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
tax payer money is supposed to be used during bad times. Trump cut taxes when everything was fine thanks to Obama. and 72% of Americans didn't notice the tax cut, yet it will cost us $10 trillion.
Millennial Dip Buyer
Millennial Dip Buyer Jun 21, 2021 7:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Pratt Man Nothing has changed in 3 years?  Not a single thing?  Are you sure nothing has changed in 3 years, especially the past year and a half that would cause the fed to carefully manage the economy and print more money than had ever been printed in the history of the US?  Things weren't 'okay' during Obama, the inequality gap was widening even then.  Trump was an awful president but Obama wasn't that great himself.
Jouni Matero
Jouni Jun 21, 2021 6:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If this will be the content of testimony, it sounds like he's, covering up major issues just to gain more time to somehow find a fix. Unfortunately the more time goes thru sandglass the bigger consequences will be. Let it go FED, admit you failed big time this time.
Richo harry
Richo harry Jun 21, 2021 6:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yes!!
JAMES CUNHA
JAMES CUNHA Jun 21, 2021 6:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
While the Fed Chairman is testifying before Congress, perhaps one of the committee members can kindly ask what would be the impact if the Fed decided to taper its bond buying. Instead of buying $80 billion in bonds each month, what would be the impact if it only bought...say $60 billion in bonds each month?  Further, why is the Fed spending $30 billion each month to buy mortgage-backed securities when we have a booming housing market?  So far, the public has not been provided a detailed explanation as to (1) who determined the amounts that are to be spent each month and (2) what benefits does the public truly gain from this type of QE when we are purportedly in the midst of economic recovery.  The final question is how the Fed is prepared to make a change in its monetary policy in light of the equity markets turning into asset bubbles and the potential of these asset bubbles collapsing when the Fed does formally announce a policy change.
Sebastian NN
Sebastian NN Jun 21, 2021 6:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
U slow bro remeber when they were buying toxic assets in 2008 well is the same they are just doing it before is call toxic assets and before it crash
Joel Schwartz
Joel Schwartz Jun 21, 2021 6:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Sebastian NN Oh man, before 2008 the FED’s balance sheet was under $1T. Now it’s closing in on $9T. We need financial regulation in this country or every market crash will be hyperbolically worse than the last, and after each - the rich get richer and the poor get poorer. Income inequality in America is currently higher than France during the French Revolution.
Etf Daytrade
Etf Daytrade Jun 21, 2021 6:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If the author is right about having the testimony, quite worrysome, and not fair, and disrespectful for congress. Powell should explain this topic.
Pratt Man
Pratt Man Jun 21, 2021 5:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
With democrats in control, the sky is the limit for America.
Millennial Dip Buyer
Millennial Dip Buyer Jun 21, 2021 5:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ah yes, neoliberal-left is certainly leaps and bounds better for the average citizen than neoliberal-right.  Certainly, my primary color party has never once let the public down in the past and your primary color party is the cause of every single problem in the world.
Pratt Man
Pratt Man Jun 21, 2021 5:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The FED has no effect on investors other than their outlook. Consumer rates are set by traders.
palmer gossett
palmer gossett Jun 21, 2021 5:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
psychology
Anil Gupta
Anil Gupta Jun 21, 2021 5:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
From where author got copy of Powell testimony? These are confidential documents & not available beforehand in public domain
Edward Lewis
Edward Lewis Jun 21, 2021 5:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Translation: The economy is doing terrible, but if we hyperinflate the currency enough it will make the stock market look good for a while...just do not look at the prices of goods/services and cost of living.
Ronald Warren
Ronald Warren Jun 21, 2021 5:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Well said Mr. Lewis!!
Ben Chod
Ben Chod Jun 21, 2021 5:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I live in the UK prices of everthing definately gone up, fuel, food, all types of goods and materials !!
Jan Novy
Jan Novy Jun 21, 2021 5:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Powell should be in jail
Michael Becker
Michael Becker Jun 21, 2021 5:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If prefer hanging from a lamp post.
Jouni Matero
Jouni Jun 21, 2021 5:22PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
FED guys are so deep in rabbit hole and they know it themselves so now all they do is kick the can
Joey Joey
Joey Joey Jun 21, 2021 5:07PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"transitory"
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email