Fed Chair Says US Inflation ‘Sustains More Than Expected’ – Strategists Predict 10% Market Correction – Economy Bitcoin News

Americans are not only worried about future inflation, but they are also working to reduce purchasing power in real-time. Meanwhile, on Thursday, Federal Reserve Chairman Jerome Powell plans to address the Senate Banking Committee and discuss inflation. In an earlier comment from Powell’s speech, the Fed chair noted that the recent rise in inflation may be more prolonged than the central bank expected.

Fed Chair Jerome Powell: ‘Inflation has been bigger and more lasting than expected’

If you read reports in the media like CNN or Axis, the reporter will probably say something like “maybe we can ignore inflation expectations.” Although CNN acknowledges inflation here, journalists like Dana Peterson have blamed the Covid Delta variant, chip shortages, labor costs and rental costs. Similar to the views of politicians and Fed board members, Peterson of CNN concluded that “inflationary pressures will probably stay with us for some more time.”

Jerome Powell’s speech on Thursday reflected a similar message as he explained in a statement to the Senate Banking Committee that the rise in inflation could continue for some time to come. “Inflation has risen and will probably remain so in the coming months,” Powell commented from Thursday’s upcoming testimony note. The central bank’s leadership blames the supply chain problem and adds:

As the economy is reviving and re-spending, we are seeing upward pressure on prices, especially due to supply disruptions in some sectors. These effects have been bigger and more lasting than expected, but they will subside and as they do, inflation is expected to return to our long-term 2 percent target.

Long-term market bulls predict 10% market correction, Fed says it will do what we can to support the economy

At the same time, “long-term market bull” Phil Orlando said Monday that a 10% correction could be made “over the next five weeks or so”. The chief market strategist at Federated Hermes explains that there is a lot of uncertainty about “monetary and monetary policy” at the moment. “We’re seeing how events evolve and evolve here,” Orlando said in an interview with CNBC’s “Trading Nation” broadcast. Market strategists continue to add:

On monetary policy, inflation is running much hotter than the Fed and the administration is predicting. We think inflation is more sustainably high. As a result, the Federal Reserve will change its monetary policy in terms of their currency and their interest rates will rise much faster than they told us.

The news follows a recent statement from the Fed last week, and in 2020 some members of the Fed board scrutinized their stock purchases. Epidemic last year. Of course, Powell’s previously published remarks from the testimony of the upcoming Senate Banking Committee mention that the central bank will always take action until the U.S. economy recovers.

Powell’s pre-published remarks emphasize, “We will do everything in our power to get the economy back on track as much as possible.”

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

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Central Bank, Criticism, Economy, Economy, Fed, Fed Expected, Fed Chair Comments, Federal Reserve, Fed Hermes Chief Market Strategist, Inflation, Jerome Powell, Currency Facilitation, Phil Orlando, Kiwi, Rising Inflation, Stimulus, Trading Nation, US Central Bank

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