Federal Powell's seat testifies that the US economy is in a solid position

Federal reserve seat Jerome Powell He said the economy is in a “sturdy position” because the central bank monitors inflation and labor market data for signs it needs to regulate monetary policy.

“Despite the high uncertainty, the economy is in complete position,” said Powell in his opening testimony on Tuesday.

“Inflation has become very high but somewhat higher than our 2 % goal is running. We pay attention to the dangers of both sides of our dual task,” the chair said. Federal Reserve Dual task for upgrading prices in the long run as well as maximum employment.

Federal Reserve has abandoned a decline in interest rates because of uncertainty about trade policy as president Donald Trump Has imposed tariffs on US business partners. The tariff on import tax is generally paid by the importer, which often transmits some or all additional costs to consumers.

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Federal Reserve President Jerome Powell said the economy is solid despite high uncertainty. (Photo by Olivier Douliery / AFP through Getty Images / Getty Images)

“The effects of tariffs, including other cases, depend on their ultimate levels. Expectations from that level and as a result of the relevant economic effects have reached their peak in April and have declined since then,” Powell said.

“However, increased tariffs this year will probably increase prices and increase economic activity,” he said. “The effects of inflation can be short-term-a single-time change at the price level. It may also be that Inflationary effects Instead it can be more stable. “

“The respondents refer to consumer polls, jobs and professional forecasts as a stimulus factor, however, beyond next year, most of the long -term expectations are compatible with our 2 % inflation goal,” he said.

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