ECON Fed Chair Powell to warn Congress that inflation pressures could last longer than expected

[Henry Bowman]

ECONOMY
Fed Chair Powell to warn Congress that inflation pressures could last longer than expected
PUBLISHED MON, SEP 27 20214:55 PM EDTUPDATED 2 MIN AGO

Jeff Cox@JEFF.COX.7528@JEFFCOXCNBCCOM

KEY POINTS

• Fed Chairman Jerome Powell cautioned that the causes of the recent rise in inflation may last longer than anticipated.
• The remarks are part of mandated testimony Powell must give to Congress regarding the Fed’s economic response to the Covid-19 pandemic.

Federal Reserve Chairman Jerome Powell, in remarks to be delivered Tuesday, cautioned Washington legislators that the causes of the recent rise in inflation may last longer than anticipated.

In a speech that he will deliver to the Senate Banking Committee, the central bank chair said economic growth has “continued to strengthen” but has been met with upward price pressures caused by supply chain bottlenecks and other factors.

“Inflation is elevated and will likely remain so in coming months before moderating,” Powell said. “As the economy continues to reopen and spending rebounds, we are seeing upward pressure on prices, particularly due to supply bottlenecks in some sectors. These effects have been larger and longer lasting than anticipated, but they will abate, and as they do, inflation is expected to drop back toward our longer-run 2 percent goal.”

The remarks are part of mandated testimony Powell must give to Congress regarding the Fed’s economic response to the Covid-19 pandemic. He will speak Thursday to the House Financial Services Committee.
Following its meeting last week, the Fed indicated it soon will start pulling back on some of the stimulus it has provided during the crisis. However, officials have stressed that the reduction of monthly asset purchases is not tantamount to looming interest rate hikes.
“We at the Fed will do all we can to support the economy for as long as it takes to complete the recovery,” Powell said.
Correction: Powell speaks Thursday to the House Financial Services Committee. An earlier version had the wrong day.

Fed Chair Powell to warn Congress that inflation pressures could last longer than expected

Federal Reserve Chairman Jerome Powell cautioned Washington legislators that the causes of the recent rise in inflation may last longer than anticipated.

www.cnbc.com

 

[Dobbin]

Oh my. So much for "transitory" inflation.

Fed Officials See ‘Transitory’ Inflation Lasting Quite a While

The Fed has said inflation will soon return close to its 2% target, yet it is clear officials are turning less sanguine—and that explains growing eagerness to start raising rates.

www.wsj.com

So what is transitory inflation that lasts a while?

I think it's called "inflation." A hidden tax which falls heavily (almost exclusively) on the poor.

Of course Democrats like inflation because it makes the lower half of the economic population beholden to THEM for alms.

Dobbin

 

[Hfcomms]

Sooner or later the jawboning won’t work anymore and people will come to the realization that the Fed has lost control. When that happens the panic really starts and then what follows next will be epic.

 

[Bps1691]

Ministry of Truth using Newspeak....

When I first read 1984 decades ago, I never thought it would happen to this country in my lifetime.

It is approaching the point of absurdity just how many accept this gobbledygook from the new Great State of America spokes persons as gospel.

H*ll, what we have is just the starting phase of massive runaway inflation brought about by the unpayable debt and uncontrolled government spending. It will run higher and higher until the system collapses and is replaced by some other flimflam form of commence and the true beast system of total government control over all transactions.

 

[Millwright]

2%?

Except for food, fuel....and everything else.


I reckon inflation will stop, when the dollar is no longer accepted.

 

[TFergeson]

I reckon inflation will stop, when the dollar is no longer accepted.

Hence why the FED can state with honesty that inflation is transitory.

 

[Henry Bowman]

Flight to "Safety" ?
BONDS
10-year yield continues rapid climb, hits the highest since June
PUBLISHED TUE, SEP 28 20214:37 AM EDTUPDATED 13 MIN AGO

Jesse Pound@JESSERPOUND

Vicky McKeever@VMCKEEVERCNBC
SHAREShare Article via FacebookShare Article via TwitterShare Article via LinkedInShare Article via Email
KEY POINTS

• Federal Reserve Chairman Jerome Powell is due to speak in front of the Senate Banking Committee at 10 a.m. ET on Tuesday.
• In prepared remarks, Powell warned that higher inflation may last longer than anticipated.

The benchmark 10-year U.S. Treasury yield rose again on Tuesday morning, trading at its highest levels since June and continuing a steady increase that began last week.

The yield on the benchmark 10-year Treasury note was up 5.2 basis points to 1.536% shortly after 9 a.m. ET after trading at 1.546% earlier in the day. The yield on the 30-year Treasury bond added 7.3 basis points, spiking to 2.076%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
TREASURYS

TICKER	COMPANY	YIELD	CHANGE	%CHANGE
US3M	U.S. 3 Month Treasury	0.038	0	0
US1Y	U.S. 1 Year Treasury	0.079	0	0
US2Y	U.S. 2 Year Treasury	0.311	0.002	0
US5Y	U.S. 5 Year Treasury	1.028	0.03	0
US10Y	U.S. 10 Year Treasury	1.543	0.059	0
US30Y	U.S. 30 Year Treasury	2.078	0.083	0

Federal Reserve Chairman Jerome Powell, in prepared remarks to be delivered on Tuesday, warned that higher inflation may last longer than anticipated.

Powell is due to deliver the remarks to the Senate Banking Committee at 10 a.m. ET on Tuesday. In the prepared speech, he said that economic growth has “continued to strengthen” but has been met with upward price pressures caused by supply chain bottlenecks and other factors.

“Inflation is elevated and will likely remain so in coming months before moderating,” Powell said.
Last week, the Fed indicated that it may soon begin pulling back its asset purchases. The central bank’s updated economic projections also showed that half of the major Fed officials now see a rate hike in 2022.

The updates from the central bank appear to have sparked a rise in yields across the time curve. The 10-year yield’s rise comes after the bonds traded at 1.30% at the end of August. The 30-year Treasury is trading at its highest yield since early July, while the 5-year yield is at its highest level since early 2020, before the Covid pandemic hit the United States.

The 10-year is now trading at a key level that could prove to be an inflection point for an even bigger move, according to Tom Essaye of the Sevens Report.

“Focus now turns towards the all-important mid-1.50% range, which is the trendline from the highs in the 10-year yield from back in late March. If economic and inflation data is solid this week, and the 10-year yield can breakthrough the mid-1.50% range and close near (or above) 1.60% this week, investors will look for a continuation of the rise in yields back to that March high of 1.74%,” Essaye said in a note to clients on Tuesday morning.

The steps toward monetary tightening from the Fed and other central banks come as investors are still worried about inflation pressures, with rising energy prices in Europe being one of the latest concerns.
“It’s quite clear that a global hiking cycle had already started before the recent mini energy crisis. Will this renewed spike in energy costs mean central banks accelerate this ... or will it hit demand enough that it actually slows them down? This is an incredibly delicate and difficult period for central banks,” Deutsche Bank’s Jim Reid said in a note to clients.
Fed Governor Michelle Bowman is due to speak at the 2021 Community Banking in the 21st Century Research and Policy Conference at 1:40 p.m. ET on Tuesday.
On the data front, the July S&P/Case-Shiller home price index showed that prices were up 19.7% year over year during that month.

The September CB consumer confidence index is then due out at 10 a.m. ET.
In addition, investors will continue to monitor the progress of the $1 trillion infrastructure bill in Washington. Lawmakers must act on a funding plan before the government faces a shutdown Friday.
An auction is scheduled to be held on Tuesday for $62 billion worth of seven-year bills.

 

[Techwreck]

No one could have foreseen this. /sarc

 

[Dozdoats]

You will get a better yield on a closet full of TP....

 

[Hognutz]

 

[Doc1]

Powell is a lying sack of sh*t. There is only one cause of inflation - which Powell fully understands - and that is the excess creation of currency by the Fed.

The US central bank, the Federal Reserve (which is not Federal and has no reserves), simply creates our currency units out of thin air. This is how the US Government finances its deficit spending; it literally borrows currency units from the Federal Reserve, which creates this "money" with a keystroke, and then .gov actually pays interest to the Fed on this created/borrowed currency! Nice work if you can get it!

Most people have never heard of how this scheme works and a lot of people who have heard it don't believe it.

By the way, The Federal Reserve is not an agency of the US Government. It is a consortium of private banks and - believe it or not - the names of said banks and their percentage of ownership is a closely held secret. This is because the basics of American money are kept hidden from the American people, who are considered to be too stupid to be allowed to understand the secrets of the money gods and also because said money gods don't want their scam to end..

So, to recap, your "money" is nothing more than unbacked fiat currency, which is created out of thin air by anonymous banks, which is then borrowed by your government, which pays interest on those borrowings. Understand that the taxes you pay are substantially going to line the pockets these anonymous, secretive, bankers and you are the tax slave.

This entire scheme is what's known as living in the land of the free and the home of the brave...

Best
Doc