Jay Powell, chairman of the Federal Reserve, said the US central bank was ready to intervene if inflation went too far, but stressed that he expected prices to rise by the end of the year.
“Economic growth has been more and more likely to increase in the coming months,” Powell said in a preliminary statement issued before a hearing on the housing committee on Wednesday.
He added that the Fed would be “prepared to adjust its financial performance if necessary” if we see signs that a low-cost approach or long-term inflation expectations are exceeding our target. ”
Mr Powell’s comments came as a result of information that reflected the US US price index two 5.4% in June compared to the previous year, which raised concerns that the US economy could be burned.
These figures could force the US Central Bank to urgently begin a plan to reduce the huge amount of money it contributes to the economy during the epidemic, and begin to reduce $ 120bn in monthly purchases.
Although Powell acknowledged the high inflation rate and insisted that the Fed would not be satisfied with inflation, he insisted that the inflation was temporary, which is shared by many bank regulators.
“Rising prices have been temporarily rising due to other constraints, as epidemic prices have been declining since the end of last spring in the 12-month reckoning,” according to Powell.
“In addition, the increasing demand for energy in areas where barriers to development or other problems in the design of small structures has led to a shift in prices for goods and services, which should change gradually due to declining constraints.
“Labor costs affected by the epidemic have risen again in recent months as the demand for services has risen and the economy has reopened,” he added.
In hearing the case, Powell should be pressured by Republican lawmakers to report on the Fed’s actions swelling. Republicans criticize White House and Democrats for pushing up prices and rising street prices $ 1.9tn promotional rules passed in March.
Some also argue that the Fed is dissatisfied with high interest rates, and wants the economic recovery to be accelerated.
But many Fed officials are afraid to move too fast to restore their financial support. The U.S. stock market is still plagued by a number of existing jobs and epidemics, and the end of the global blood crisis could remain a threat to the American economy.
U.S. government debtors extended their meeting after Powell’s evidence was released, showing bankruptcy for 10 years exceeding 0.4 percent lower on the day to 1.37%.
The Old Treasury, which understands legislative change, is also available. Yields on two-year correspondence fell by about 0.02 per cent to 0.23%.
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