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Fed chair calls US inflation ‘more permanent than anticipated’ – strategist predicts 10% market correction – Economics Bitcoin News

Americans are not only concerned about future inflation, but they are also dealing with real-time dwindling purchasing power. Meanwhile, on Thursday, Federal Reserve Chairman Jerome Powell plans to address the Senate Banking Committee and discuss inflation. In pre-published remarks from Powell’s speech, the Fed chairman noted that recent inflation growth could last longer than the central bank had anticipated.

Fed Chair Jerome Powell: ‘Inflation impacts far outweighed long-run estimates’

If you read a report published by news outlets like CNN or Axios, chances are the reporter would say something like “Maybe we can ignore inflation expectations.” While CNN admits inflation is here, journalists like Dana Peterson blame things like the Covid delta version, chip shortages, labor costs, and rent costs. Similar to the opinion of politicians and Fed board members, CNN’s Peterson concludes that “inflationary pressure will probably be with us for some time.”

Jerome Powell’s speech on Thursday reflects the same kind of message as he explained in his pre-published statements to the Senate Banking Committee that inflation growth could continue for a while. Powell’s remarks from Thursday’s forthcoming testimony note, “Inflation has increased and will remain so in the coming months before turning lower.” The central bank blamed supply chain issues and added:

As the economy reopens and spending rebounds, we are seeing upward pressure on prices, especially due to supply constraints in some areas. These effects have been larger and longer-lasting than anticipated, but they will subside, and as they do, inflation is expected to fall back toward our long-run 2 percent target.

Long-time market bull predicts 10% market correction, Fed says it will do ‘everything we can to support economy’

At the same time, there could be a 10% correction “over the next five weeks,” Phil Orlando said on Monday in a “long-term bullish market rally.” The chief market strategist at Federated Hermes points out that there is a lot of uncertainty about “fiscal and monetary policies” right now. “We’re seeing how events develop and develop here,” Orlando said during an interview on CNBC’s “Trading Nation” broadcast. The market strategist added:

On the monetary policy side, inflation is running much hotter than the Fed and administration has been predicting. We think inflation is more permanently higher. This will result in changes in monetary policy at the Federal Reserve in terms of their taper and their interest rate going up much faster than what we originally told us.

News Last week’s recently published statements from the Fed and some members of the Fed’s board are being investigated for stock purchases in 2020. Fed Chairman Jerome Powell has also been criticized for owning the same type of bond that the US Central Bank bought. pandemic last year. Of course, Powell’s pre-published remarks from upcoming Senate Banking Committee testimony notes that the central bank will always step in until the US economy recovers.

“We at the Fed will do all we can to support the economy as long as the recovery takes time to complete,” emphasized Powell’s pre-published remarks.

What do you think of Powell’s speech to the Senate Banking Committee on Thursday? Let us know what you think about this topic in the comment section below.

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Central Bank, Criticism, Economics, Economy, Fed, Fed Anticipated, Fed Chair Comment, Federal Reserve, Chief Market Strategist of Federated Hermes, Inflation, Jerome Powell, Monetary Easing, Phil Orlando, QE, Rising Inflation, Investigation, Senate Banking Committee, incentive, trading nation, US central bank

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