Federal Reserve Chairman Jerome Powell reiterated plans to keep interest rates near zero and asset purchases despite signs that the US economy is recovering from the epidemic.
After telling the Senate on Tuesday that he was worried about inflation, Powell told the House Financial Services Committee on Wednesday that he would keep the money flowing cheaply until the Fed “pushed employment forward,” according to Employment While predicting, he is likely to take what he has predicted. Sometime.”
The Dow Jones Industrial Average was recently up 290.26 points to 31,827.61 as investors appeased the prospect of easy money to keep the shares going despite decreasing bond demand.
Lawmakers on both sides pressured the nation’s major monetary policy-maker as to whether the Fed needed to maintain its ultra-aggressive policies with jobs on growth and bond yields, after the two finally imploded in the first half of 2020 Some signs of life are visible.
Powell agreed with some House members that the country’s economic future had brightened. Still, he said unemployment remains troublingly high and that the “labor market is sorely lacking” to meet the Fed’s full employment target.
The Fed’s chair declined to comment on President Biden’s $ 1.9 trillion bailout law, but said the package would have a negative impact on inflation.
Through a two-hour inquiry on Wednesday, members of the House – the same committee that heard the Reddit rally last week – had not asked Powell about protecting the kind of retail investors who raised the price of GameStop in January Was.
On Tuesday, however, Powell admitted to the Senate that he believed the excess liquidity being fed by the Fed into markets was impacted by the redit rally.