Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Powell to Talk Up Job Gains, Transitory Inflation in Testimony on Hill

Published 21/06/2021, 22:00
Updated 21/06/2021, 22:00
© Reuters.

© Reuters.

By Yasin Ebrahim

Investing.com - Federal Chairman Jerome Powell is expected to talk up the prospect job gains in the coming months, but reiterate that the recent notable increase in inflation will likely prove transitory amid an even economy, according to prepared remarks ahead of his testimony Tuesday for the House Select Subcommittee on Coronavirus Crisis.

"Since we last met, the economy has shown sustained improvement," Powell will say in prepared remarks. 

On the labor market job, Powell is expected to say that "job gains should pick up in coming months as vaccinations rise, easing some of the pandemic-related factors currently weighing them down."

"The unemployment rate remained elevated in May at 5.8%, and this figure understates the shortfall in employment, particularly as participation in the labor market has not moved up from the low rates that have prevailed for most of the past year."

Inflation, meanwhile, which has been the subject of much debate has "increased notably" in recent months, but will likely prove transitory, according to Powell's testimony.  As "these transitory supply effects abate, inflation is expected to drop back toward our longer-run goal," Powell is expected to say in testimony.

On the overall economy, Powell will acknowledge that indicators of economic activity and employment "have continued to strengthen, and real GDP this year appears to be on track to post its fastest rate of increase in decades," but bely the strength by highlighting that this "rapid growth reflects the continued bounce back in activity from depressed levels."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.