U.S. Federal Reserve Chairman Jerome Powell observes that the U.S. economy is maintaining stability, expecting inflation to rise higher this summer.

MAIN CONTENT

  • Fed Chairman provides a positive assessment of the U.S. economic situation.

  • Inflation is expected to rise sharply in the summer of 2024.

  • The impact of tariffs is considered an external factor that does not affect the fundamental trend.

How does the Chairman of the Federal Reserve assess the current economy?

Mr. Jerome Powell affirmed that the U.S. economy is in quite good shape, showing strength in key economic indicators. This statement is based on analyses from Fed experts and actual economic data.

This assessment reinforces the view that current monetary policy measures are facilitating sustainable growth.

How will inflation fluctuate this summer?

Mr. Powell emphasized that inflation will behave as expected and is projected to rise in the summer months of 2024. This is a signal that price pressures remain, even though economic policies have been established to control it.

Inflation, if not taking into account the effects of tariffs, will develop according to our expectations this summer.
Jerome Powell, Fed Chairman, spoke on July 1, 2024

What is the impact of tariffs on inflation and the U.S. economy?

Mr. Powell believes that if the tariff factor is removed, inflation will behave according to the initial predictions. This indicates that tariffs are merely an external factor, not reflecting the fundamental conditions of the economy. Therefore, monetary policy can focus more effectively on controlling inflation.

Real-world examples and supporting data

The U.S. Bureau of Labor Statistics report shows that the Consumer Price Index increased by 0.3% each month in the second quarter of 2024, while independent studies forecast an average inflation increase of about 4.2% this year.

Frequently Asked Questions

How long does the Fed predict inflation will rise? It is expected that inflationary pressures will primarily appear in the summer of 2024 according to the Fed Chairman's assessment. How will Fed policies change to respond to inflation? The Fed will continue to closely monitor and adjust interest rates if necessary to control stable inflation. Why do tariffs not have a primary impact on inflation? Tariffs are external influences that do not reflect the fundamental causes, thus not skewing the long-term inflation trend. Is the current economic situation in the U.S. positive? The Fed assesses that the U.S. economy is doing quite well with many key indicators remaining stable and showing healthy growth. Will inflation last until the end of the year? Fed experts predict that inflation will gradually decrease after the summer thanks to effective control measures.

Source: https://tintucbitcoin.com/fed-chairman-warns-about-crypto-inflation/

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