cloudy.png
Friday September 17th, 2021 11:57AM

Fed's Powell: US economic recovery is uneven and incomplete

By The Associated Press
Related Articles
  Contact Editor

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell underscored the U.S. economy's ongoing weakness Tuesday in remarks that suggested that the Fed sees no need to alter its ultra-low interest rate policies anytime soon.

“The economic recovery remains uneven and far from complete, and the path ahead is highly uncertain,” Powell said in written testimony to the Senate Banking Committee.

Powell's comments are in contrast to the increasing optimism among many analysts that the economy will grow rapidly later this year. That outlook has also raised concerns about a potential surge in inflation and fueled a sharp increase in longer-term interest rates this year. Most economists say they think the Fed’s continued low rates, further government financial aid and progress in combating the viral pandemic could create a mini-economic boom as soon as this summer.

Powell acknowledged the potential for a healthier economy. But he stressed the personal hardships caused by the pandemic, especially for unemployed Americans.

“As with overall economic activity, the pace of improvement in the labor market has slowed,” Powell said. “Although there has been much progress in the labor market since the spring, millions of Americans remain out of work.”

The financial markets are more focused for the moment on the potential for rapid growth. On Monday, the tech-heavy Nasdaq index tumbled a steep 2.5% as the yield on the 10-year Treasury note surged to nearly 1.37%. At the start of the year, the 10-year yield was below 1%.

Rising interest rates typically reflect optimism that the economy is poised to expand more quickly, which can accelerate inflation. But they can also weaken growth, especially if the Fed were to respond to rising inflation by raising its benchmark rate more quickly than markets expect.

Powell did not mention the sharp increase in longer-term rates this year or the stock market's run-up to frothy levels in his written testimony.

Powell is testifying before the Senate Banking Committee in the first of two days of semiannual testimony to Congress that is required by law. On Wednesday, he will testify to the House Financial Services Committee.

  • Associated Categories: Associated Press (AP), AP National News, Top General short headlines, AP Online Headlines - Washington, AP Online Congress News, AP Business, AP Business - Economy, AP Business - Industries, AP Business - Financial Services
© Copyright 2021 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
GOP working to block Biden's health care pick; Dems unfazed
President Joe Biden’s pick for health secretary is facing two days of contentious Senate hearings
10:15AM ( 7 minutes ago )
Security officials cast blame for Jan. 6 failures at Capitol
Former security officials set to testify publicly for the first time about the Jan. 6 insurrection at the Capitol are poised to cast blame on the Pentagon, the intelligence community and each other
10:11AM ( 10 minutes ago )
Ahmaud Arbery memorialized in Georgia a year after slaying
Few outside the Georgia port city of Brunswick paid much attention at first when Ahmaud Arbery was pursued by white men and shot to death while running through their neighborhood
10:10AM ( 12 minutes ago )
Associated Press (AP)
Hillary Clinton and Louise Penny co-writing mystery novel
One of the world’s better known fans of mystery novels is Hillary Rodham Clinton
8:52AM ( 1 hour ago )
A year on, India's riot victims say justice still unserved
As the first anniversary of bloody communal riots that convulsed the Indian capital approaches, Muslim victims are still shaken and struggling to make sense of their struggle to seek justice
8:50AM ( 1 hour ago )
Unfriended no more: Facebook to lift Australia news ban
Facebook says it will lift a ban on Australians viewing and sharing news on its platform after it struck a deal with the government on proposed legislation that would make digital giants pay for journalism
8:02AM ( 2 hours ago )
AP National News
Facebook says it will lift its Australian news ban soon
Facebook says it will lift its ban on Australians sharing news after reaching a deal with Australia’s government on legislation that would make digital giants pay for journalism
2:28AM ( 7 hours ago )
What NY prosecutors could learn from Trump's tax records
Manhattan's district attorney fought for a year and a half to get access to former President Donald Trump’s tax records
1:04AM ( 9 hours ago )
Deb Haaland hearing is Indian Country's Obama moment
For Native Americans, Deb Haaland is more than an elected official on track to become the first Indigenous secretary of the Interior Department
12:50AM ( 9 hours ago )
Top General short headlines
The Latest: Hungary urges citizens to get vaccine from China
Officials in Hungary are urging people to trust the COVID-19 vaccine developed in China that will be rolled out Wednesday
8:40AM ( 1 hour ago )
Coronavirus forces Biden to forgo pomp for US-Canada meeting
The coronavirus pandemic is forcing President Joe Biden to alter another first for his administration: the typically formal White House meeting with a foreign counterpart
7:51AM ( 2 hours ago )
Report: Far-right incidents surge in German military
Parliament's commissioner for the German military says the number of suspected far-right incidents in the military's ranks has risen to 477 last year from 363 in 2019
7:27AM ( 2 hours ago )
AP Online Headlines - Washington
The Latest: More vaccines head to California Central Valley
Gov. Gavin Newsom says more vaccines are headed to California’s vast Central Valley, an agricultural region that’s been hit hard by coronavirus
7:51PM ( 14 hours ago )
EPA changes stand, sides with ethanol industry in court case
The federal government announced Monday that it will support the ethanol industry in a lawsuit over biofuel waivers granted to oil refineries under President Donald Trump’s administration
6:45PM ( 15 hours ago )
Garland vows sharp focus on Capitol riot as attorney general
Merrick Garland is vowing to prioritize combating extremist violence with an initial focus on the insurrection at the U.S. Capitol if he is confirmed as attorney general in President Joe Biden's administration
6:31PM ( 15 hours ago )
AP Online Congress News
In year of pandemic, Home Depot became supplier to millions
The Home Depot’s fiscal fourth-quarter sales surged 25% as the home improvement chain continues to meet the demands of consumers stuck at home and a resilient housing market
9:32AM ( 50 minutes ago )
U.S. home prices rise 10.1% in December, fastest since 2014
U.S. home prices surged at the fastest pace in nearly seven years in December, fueled by low mortgage rates and Americans moving from urban apartments to houses in the suburbs
9:00AM ( 1 hour ago )
EXCERPT: `Kill Shot' probes shadow industry, deadly disease
EDITOR’S NOTE — This is an exclusive excerpt adapted from “Kill Shot: The Untold Story of the Worst Contaminated Drug Crisis in U.S. History,” by Associated Press investigative...
8:55AM ( 1 hour ago )
AP Business
UK unemployment rate rises for 6th straight month
The U.K. unemployment rate rose for a six straight month in December as renewed coronavirus restrictions shut down most businesses across the country
3:52AM ( 6 hours ago )
Asian shares mixed amid vaccine optimism, US tech sell-off
Asian markets are mixed after a sell-off of shares in technology companies on Wall Street
2:00AM ( 8 hours ago )
Asian shares mostly higher amid coronavirus vaccine optimism
Asian shares are mostly higher despite a sell-off in technology companies on Wall Street
11:11PM ( 11 hours ago )
AP Business - Economy
Long-serving Saudi oil minister Ahmed Zaki Yamani dies at 90
Ahmed Zaki Yamani, a long-serving oil minister in Saudi Arabia who led the kingdom through the 1973 oil crisis and once found himself held hostage by the assassin Carlos the Jackal, has died in London
3:43AM ( 6 hours ago )
The Latest: FDA will allow short studies of virus variants
The Food and Drug Administration said Monday that it won’t require huge, months-long studies if COVID-19 vaccines eventually need tweaking to better match a mutating virus -- small, short studies will suffice
4:28PM ( 17 hours ago )
The Latest: Oklahoma opens second phase of COVID-19 vaccines
Oklahoma has opened its second phase of coronavirus vaccinations on Monday, providing inoculations to public school teachers and staff and to adults of any age with illnesses that make them susceptible to the virus
3:14PM ( 19 hours ago )
AP Business - Industries
Sudan announces managed currency float to revive economy
Sudan has announced a managed floating exchange rate system and sharply devalued its currency
8:49AM ( 2 days ago )
Sudan floats currency, part of measures to overhaul economy
Sudan has taken the unprecedented but expected step of floating its currency
5:48AM ( 2 days ago )
Nonprofits step up to protect fertility for cancer patients
The Chick Mission, a New-York based organization, pays the full cost of fertility preservation procedures for women with cancer
9:55AM ( 4 days ago )
AP Business - Financial Services
GOP working to block Biden's health care pick; Dems unfazed
President Joe Biden’s pick for health secretary is facing two days of contentious Senate hearings
10:15AM ( 7 minutes ago )
Security officials cast blame for Jan. 6 failures at Capitol
Former security officials set to testify publicly for the first time about the Jan. 6 insurrection at the Capitol are poised to cast blame on the Pentagon, the intelligence community and each other
10:11AM ( 11 minutes ago )
Ahmaud Arbery memorialized in Georgia a year after slaying
Few outside the Georgia port city of Brunswick paid much attention at first when Ahmaud Arbery was pursued by white men and shot to death while running through their neighborhood
10:10AM ( 12 minutes ago )
World Bank might suspend financing of vaccines to Lebanon
The World Bank has threatened to suspend financing for coronavirus vaccines in Lebanon over violations by members of parliament and others it said were inoculated without registering in advance
10:07AM ( 15 minutes ago )
Judge needs more time for thorny issues in Flint water case
A judge says he needs more time to research whether Genesee County, Michigan, is the proper place to charge a former Michigan governor in the Flint water scandal
10:05AM ( 17 minutes ago )