The president of the Federal Reserve (Fed), Jerome Powell, appeared this Tuesday before senators of the United StatesHe said that the body he chairs must now focus more on high inflation than full employment, while assessing which of his two terms is furthest from his goal.
MARKETS CLOSED UP
“I would say that now it is inflation that requires more attention from members of the Fed.“said Powell, in response to a senator’s question during his renomination confirmation hearing before the Senate Banking Committee, the international news agency reported Reuters.
Mercado Libre bounced strongly and Argentine stocks closed positive
Consistent with that response, he argued: “If we see inflation persist at high levels, more than expected, and we have to increase interest rates more over time, we will.”
Also, make sure that “eThe US labor market is recovering rapidly from the blow it received during the coronavirus pandemic and should not face further weakness as the Federal Reserve begins to withdraw some of the support offered during the crisis. “.
“It really is time for us to start moving away from those emergency measures taken by the pandemic to a more normal level,” Powell said during his renomination hearing before the Senate Banking Committee.
“But it really shouldn’t have negative effects on the job market,” he added.
Regarding the Coronavirus, he stated that there may be a pause in hiring and growth in the short term due to micron, but clarified that “it should be transitory”, and stressed that in the coming quarters the outlook could be “very positive” as decrease infections.
Indices for US stocks closed higher on Tuesday, with the Nasdaq leading the positive wave as investors took comfort in the testimony from Jerome Powell’s testimony, which delivered no major surprises.
After falling 1% earlier in the day, the tech sector, sensitive to rate changes, rebounded and boosted indices.
In this context, it rose 0.51% to 36,252.02 points; the S&P 500 gained 0.92%, to 4,713.07 units, and the Nasdaq advanced 1.41%, to 15,153.40 points.