Powell Says Omigran Variation Can Affect US Economy And Increase Uncertainty About Inflation – 11/29/2021 – Market

Oh Federal Reserve Chairman Jerome Powell, Considers that the recent increase in Govt-19 cases and the emergence of the Omigron variant pose a negative risk to employment and economic activity and increase uncertainty about inflation.

Powell, who has given Joe Biden a new term as central bank chairman, believes there are “factors for that”. Raising inflation They will continue next year, “said Tariq al-Hashimi, the party’s secretary general on Tuesday.

“Increased concern about the virus will reduce the desire to work in person, which will slow the progress of the job market and exacerbate problems in the supply chain,” he added.

You Distribution problems They caused a shortage of many commodities, which, along with growing demand, contributed to the rise in prices.

Powell warned that inflation was “too high” above the agency’s 2% target.

Inflation reached 5% in 12 months in October, the highest level since 1990, according to the Department of Commerce’s PCE index.

“Problems in the supply chain have made it difficult for manufacturers to respond to strong demand. Higher energy prices and rents are causing inflation,” he added.

While the Fed continues to see “inflation will fall significantly next year,” Powell acknowledges that the trend is “difficult to predict.”

Powell and Treasury Secretary Janet Yellen will be in Congress on Tuesday and Wednesday before the Senate Banking Committee and the House Financial Services Committee.