Fed Chair Powell to warn Congress that inflation pressures could last longer than expected

[Calista241]

Source: CNBC

Federal Reserve Chairman Jerome Powell, in remarks to be delivered Tuesday, cautioned Washington legislators that the causes of the recent rise in inflation may last longer than anticipated.

In a speech that he will deliver to the Senate Banking Committee, the central bank chair said economic growth has “continued to strengthen” but has been met with upward price pressures caused by supply chain bottlenecks and other factors.

“Inflation is elevated and will likely remain so in coming months before moderating,” Powell said. “As the economy continues to reopen and spending rebounds, we are seeing upward pressure on prices, particularly due to supply bottlenecks in some sectors. These effects have been larger and longer lasting than anticipated, but they will abate, and as they do, inflation is expected to drop back toward our longer-run 2 percent goal.”

The remarks are part of mandated testimony Powell must give to Congress regarding the Fed’s economic response to the Covid-19 pandemic. He will speak Thursday to the House Financial Services Committee.

Read more: https://www.cnbc.com/2021/09/27/fed-chair-powell-to-warn-congress-that-inflation-pressures-could-last-longer-than-expected.html

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Inflation poses more risk to Biden and Dems than anything else out there.

[MichMan]

1. So not quite as transitory as they said previously

[AZLD4Candidate]

2. They will use this to "own the libs." Think the GOP will care about it. This is a political win

for them.

[The Mouth]

3. Inflation is the *greatest* threat to the Biden Presidency

and Democratic control of Congress.

A bigger threat than all other factors, from the harping on Afghanistan, to voter suppression, to the border combined in my opinion.

Anything above 2-3 percent inflation is unconscionable, it's literally impoverishing to anyone on a fixed income with no COLA.

Inflation got us Reagan before.

[totodeinhere]

4. The best way to get inflation under control would be to tax the rich and make them pay

their fair share. We should not use inflation as an excuse to cut back on social spending.

[ShazamIam]

5. Funny how no one in the media is mentioning, price gouging, especially for any necessity.

[Calista241]

6. Is milk that costs $5 today when it cost $3 last year price gouging? Or is it inflation?

Especially when its country wide. It's not like there's 10 Publix's that don't have milk, and then there's this 1 Kroger that has a shit-ton of milk, but they're charging $25 for it.

[ShazamIam]

7. Most notable there is no mention of price gouging, and this inflation is highest on necessities. It

is actually a good tome to buy a few luxury items as long as it isn't real estate or stocks. /s

[Elessar Zappa]

8. I'm still paying the same for milk.

$2.79 per gallon at WalMart, same price as the past few years.

[ancianita]

9. Well, when the meat and dairy industries are price subsidized, how can you tell.

Aren't the true values of production and distribution hidden with subsidies?
We don't even have a baseline price setting to know what gouging or inflation would even be.

[IronLionZion]

10. It varies by sector

the chip shortage has no end in sight and chips are in all sorts of things these days. Maybe it's time to make stuff without chips for folks who like to keep it simple and old school.

Energy is closely tied to airlines, shipping, and other transport which has increased fast this year after slowing down last year.

Wages and rents will keep on increasing as there are labor shortages and people need rental housing if they can't afford to buy homes. People have been moving away from cities last year and some have been moving back this year. There's a lot of changes afoot in all sectors.