This is when the central bank will change its easy monetary policy

This is when the central bank will change its easy monetary policy

When it comes to the central bank’s accommodating monetary policy, investors can rest easy. Federal Reserve Chairman Jerome Powell said yesterday that officials are looking for “substantial further progress” on the economic recovery front before they stop their extensive bond-buying program. They will also keep rates near zero as they wait for that improvement. 

He maintained his stance that the inflation surge is temporary, and he noted that much of the increase can be attributed to the used-car industry. 

“It’s all kind of the same story,” he said in his testimony before the House Financial Services Committee. “It’s a shortage of semiconductors. There’s also very high demand for various reasons.”

He continued: “It’s just a perfect storm of high demand and low supply and it should pass. Unless we think there’s gonna be a multi-year, many-year shortage of used cars in the United States, we should look at this as temporary. We very much think that is.”

He is slated to testify today before a Senate committee.

What other comments from Powell should you be aware of right now? 

More Headlines You Need To Read:

Why was this 75-year-old man tased by an Idaho police officer?

This popular oat milk company is in trouble for overstating revenue

Watch: a mom throws a child from a burning building during this riot

Why is the junk bond market on fire this year?

Remains of 43 illegal immigrants were found along Arizona’s borderlands

Why is Twitter killing this feature that competes with Facebook stories?

Author: Fredrick Frost

Fedrick Frost is the Editor-in-Chief of Morning Bullets. He mainly writes about Politics, The Economy and breaking news. With over 35 years in jounralism he has been influential in helping the morning bullets newsletter readers be informed every morning.