Fed Chairman Powell Says The Targets are Far from Reach

Fed Chairman Powell says the targets are far from reach. Jerome Powell noted that achieving full employment is unlikely.

US Federal Reserve (FED) President Jerome Powell said "We are still far from achieving our goals." Powell said, "We are firmly committed to our promise to achieve our goals. There are strong reasons to expect an increase in employment, but full employment is unlikely to be achieved in 2021." Powell said, "I expect inflation to rise as the economy recovers.": "The FED will use its tools to reach the inflation target. We will be patient if there is a temporary increase in inflation. Our guidance on rate hike is very clear and it will take some time to get there. There are many issues that need to be addressed before tightening the monetary policy." FED President Jerome Powell stated that the volatility in the bond market has caught his attention, said, "The FED does not want to surprise people by reducing their asset purchases. The irregular conditions in the markets are a cause for concern. I will be worried about the constant tightening of financial conditions. The global low inflation environment will not change anytime soon." In addition, the US 10-year bond yields rose to 1.53 percent, which rose again after Jerome Powell's speech. The S&P 500 Index, on the other hand, returned its 2021 earnings, down 1.6 percent. Last week, 10-year bond yields rose to 1.6, while stock markets experienced a sharp decline, while strong sales were observed in assets of developing countries.     Source: Bloomberg HT