While the focus of market players was directed at Federal Reserve (Fed) Chairman Jerome Powell’s testimony at today’s New York session, the text of his speech was released first.
According to the available statement, Powell vowed not to allow inflation to persist in the long run in the U.S. economy.
Powell, who has been nominated by President Joe Biden to run the Fed for another term, said the central bank is very committed to achieving its goal of maximum jobs and price stability.
He also told that the central bank would use all their tools to support a strong economy and labor market and prevent higher inflation from taking root.
Jerome Powell, commonly known for his dovish stance, has turned hawkish after seeing U.S. consumer prices rise to a 39 -year high of 6.8% in November.
He added that the US economy was seen growing at the fastest rate in several years and the labor market was strengthening. This can be seen from the unemployment rate data which showed a fall in December to 3.9%, the lowest since February 2020.
However, he also acknowledged that challenges remain, including the high cost of living.
Even so, Powell said that during his first term at the Fed, the central bank continued to ensure a strong and resilient financial system.
