On March 7, regular hearings were held in the US Congress on the economic agenda. The congressmen heard the head of the Federal Reserve Jerome Powell on key issues of the population, banking services and the real estate market.
Not expecting such an outburst of indignation on the part of senators, D. Powell came under the "rink" of senators. A significant portion of criticism poured out on the head of the Fed regarding current approaches to solving economic problems related to unbridled inflation and the labor market, which directly fall on the shoulders of ordinary Americans, i.e. their voters.
Certain concerns were also expressed that the dollar today is no longer an unambiguous choice of the whole world.
Members of the Senate banking committee have already openly admitted their mistakes related to the printed trillions of dollars in recent years.
Jerome Powell, in his usual manner, tried to calm the Senate by assuring that all decisions of the Fed should be taken slowly, assessing the dynamics of what is happening in key sectors of the economy.
The head of the Fed noted the main priorities for the near future:
- maintaining a strong labor market,
- reduction of inflation in priority sectors - real estate and services
- the return of the general level of average annual inflation by 2%
Powell made it clear to everyone that a tough approach to US monetary policy will continue until these goals are achieved.
There was a certain pessimism in his words regarding the crypt as an innovative product in finance. It was also noted that the Fed does not deal with politics and global climate issues. Their competence is the internal economy.
The results of the hearings were immediately reflected in the markets - everything went into the red zone.
The forecast for the interest rate level was shifted by 0.25%. After March 22, the rate is likely to be raised to 5.75%, and in the near future its 6% value is already visible.
The results of the hearings in the US Congress - the head of the Fed got under the rink of senators Somehow!
