Fed’s Powell: Inflation is more concerning than earlier this year

Matías Salord FXStreet

At a Senate Banking Committee hearing, Federal Reserve chair, Jerome Powell, said inflation is now more concerning than earlier this year. Speaking alongside Treasury Secretary Yellen, Powell said the test for raising rates is higher and explained that even with tapering, the Fed will continue to buy bonds until mid-2022.

Regarding the labor market, Powell sees still a long way toward maximum employment. He said they believe at the Fed, inflation will come down. According to him, supply-side restrictions are at the heart of inflation.

The US dollar is holding onto daily gains across the board. The DXY gains 0.30% at 93.70, on its way to the highest daily close since November.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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