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Fed's Powell downplays inflation fears, pledges to keep rates low
Washington (AFP) - Federal Reserve Chairman Jerome Powell attempted to tamp down rising inflation concerns, and again on Tuesday pledged to keep benchmark lending rates low until jobs recover and prices have risen consistently. The Covid-19 pandemic remains the key factor determining how quickly the world's largest economy can recover, but Powell said vaccine rollouts offer hope things can return to normal quickly and the Fed has the tools to deal with price increases. With Congress moving towards approving President Joe Biden's $1.9 trillion rescue plan, the central bank chief remained steadf...
AFP
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Fed's Powell pledges low rates until inflation exceeds 2%
Washington (AFP) - Federal Reserve Chairman Jerome Powell on Tuesday pledged that the US central bank will keep benchmark lending rates low until the economy is at full employment and inflation has risen consistently. The assurance comes amid growing fears on markets that a quick recovery from the pandemic will lead to higher interest rates. Powell insisted that the Fed will keep rates at the current level near zero until the economy reaches "maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time." However, he cautioned, "the econom...
AFP
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Fed's Powell warns US 'very far' from a strong labor market
Washington (AFP) - The US economy is a long way from having a strong job market and the experience of past recessions shows it could take years to recover, Federal Reserve Chair Jerome Powell said Wednesday. Mass vaccinations are key to halting the Covid-19 health crisis, but it will take a full suite of government policies to repair the damage the pandemic has inflicted on the US labor market, the central bank chief said in a speech. "Despite the surprising speed of recovery early on, we are still very far from a strong labor market whose benefits are broadly shared," Powell told the Economic...
AFP
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US 'very far' from a strong labor market: Fed's Powell
Washington (AFP) - The US economy is a long way from a strong job market and the experience of past recessions shows it could take years to recover, Federal Reserve Chair Jerome Powell said Wednesday. In addition to mass vaccinations to halt the Covid-19 health crisis, it will take a full suite of government policies to repair the damage done by the pandemic to the US labor market, the central bank chief said in a speech. "Despite the surprising speed of recovery early on, we are still very far from a strong labor market whose benefits are broadly shared," Powell told the Economic Club of New ...
AFP
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Fed's Powell warns economic outlook still 'highly uncertain'
Washington (AFP) - The fate of the US economy depends on the course of the pandemic and the Covid-19 vaccine rollout, but the outlook is nonetheless "highly uncertain," Federal Reserve Chair Jerome Powell said Wednesday. "A resurgence in recent months of Covid-19 cases, hospitalizations and deaths is causing great hardship for millions of Americans and weighing on economic activity and job creation," the central bank chief said. He said government spending programs have helped support the economy, but the United States needs to recover at least nine million jobs to reach the goal of full emplo...
AFP
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Little change expected as Fed ends first meeting of Biden era
Washington (AFP) - The Federal Reserve will on Wednesday conclude its first meeting since US President Joe Biden took office, and while the central bank is certain to comment on the health of the country's economy amid the Covid-19 pandemic, analysts say it's unlikely to change its main policies. The policy-setting Federal Open Market Committee (FOMC) will almost certainly keep interest rates at their rock-bottom level following the conclusion of its two days of deliberations, held as the world's largest economy endures the worst coronavirus outbreak globally with a death toll topping 420,000....
AFP
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US Fed holds first policy meeting of Biden administration
Washington (AFP) - With a new year and a new administration in the White House, the US central bank nonetheless faces an unprecedented challenge in guiding the post-pandemic economic recovery. One thing Federal Reserve Chair Jerome Powell is unlikely to face from President Joe Biden is the barrage of Twitter attacks he was subject to, sometimes daily, under former president Donald Trump. White House spokeswoman Jen Psaki last week said Biden "clearly has a great deal of respect and value for the Federal Reserve and role they play." But even absent political pressures, the outlook is daunting. ...
AFP
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Fed report shows mixed picture of tepid US recovery
Washington (AFP) - Some segments of the US economy showed promising signs of rebounding from pandemic damage, but the picture remains decidedly mixed amid the uptick in Covid-19 infections, according to a Federal Reserve report Wednesday. Most regions of the country reported "economic activity increased modestly," and employment rose albeit slowly, as housing sales remained strong and manufacturing stayed on an upward trajectory, the central bank said in its "beige book" survey of economic conditions. The world's largest economy posted a record economic collapse of 31.4 percent in the April-Ju...
AFP
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Congress nears US spending deal, Fed more upbeat on outlook
Washington (AFP) - Congressional leaders on Wednesday said they were nearing a long-awaited agreement on a stimulus package for the US economy as the Federal Reserve cautioned that the economic outlook remains uncertain. A government relief package to aid struggling businesses and jobless workers is seen as essential in getting the world's largest economy back on its feet amid a resurgence of Covid-19 infections, even as new vaccines offer hope that life can return to normal. "The case for fiscal policy right now is very strong. I think that is widely understood," Fed Chair Jerome Powell told ...
AFP
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Congress nears US spending deal with Fed to weigh in on economy
Washington (AFP) - Congressional leaders on Wednesday said they were nearing a long-awaited agreement on a stimulus package for the US economy, while the Federal Reserve is set to provide updated forecasts that could show renewed optimism for the months ahead. A federal relief package to aid struggling business and jobless workers is seen as essential in getting the world's largest economy back on its feet even as vaccines against Covid-19 are rolled out, and would also ease the pressure on the central bank, which has limited tools to help the economy. "We made major headway toward hammering o...
AFP
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