{"id":1839193,"date":"2023-02-08T06:50:38","date_gmt":"2023-02-08T11:50:38","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1839193"},"modified":"2023-02-08T06:53:32","modified_gmt":"2023-02-08T11:53:32","slug":"fed-chair-powell-says-long-way-to-go-in-inflation-fight-calls-u-s-debt-unsustainable","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-chair-powell-says-long-way-to-go-in-inflation-fight-calls-u-s-debt-unsustainable\/","title":{"rendered":"Fed Chair Powell Says &#8220;Long Way to Go&#8221; in Inflation Fight, Calls U.S. Debt &#8220;Unsustainable&#8221;"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffed-chair-powell-says-long-way-to-go-in-inflation-fight-calls-u-s-debt-unsustainable%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1839193&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<p>The United States is monitoring disinflation in the national economy but \u201cit has a long way to go\u201d Before price stability can be achieved, it is important to: <a href=\"https:\/\/www.theepochtimes.com\/t-federal-reserve\">Federal Reserve<\/a> Chair Jerome Powell.<\/p>\n<p>On Tuesday, the Fed chair spoke at the Economic Club of Washington and acknowledged that the country was in the \u201cvery early stages of disinflation.\u201d However, there is still high inflation in many areas of the marketplace, he stated, referring to services.<\/p>\n<p>In December, there was a rise in services inflation <a href=\"https:\/\/tradingeconomics.com\/united-states\/services-inflation\">Climbing<\/a> According to the Bureau of Labor Statistics, this figure is 7.5 percent higher than last year. This is the highest level recorded since August 1982.<\/p>\n<p>According to Powell, it is going to take time to return inflation to the central bank\u2019s 2 percent target, and the road to this aim is \u201cprobably going to be bumpy.\u201d Accordingly, he believes that Fed policy will have to be kept at a low level for a long time.<\/p>\n<p>\u201cWe expect 2023 to be a year of significant declines in inflation. It\u2019s actually our job to make sure that that\u2019s the case,\u201d Powell spoke to David Rubenstein (Carlyle Group cofounder) at the event. \u201cMy guess is it will take certainly into not just this year, but next year to get down close to 2 percent.\u201d<\/p>\n<p>Today, the personal consumption expenditure (PCE) price index\u2014the Fed\u2019s preferred inflation measurement\u2014is running at an annualized rate of 5 percent. Core PCE, which excludes volatile food and energy sector sectors, is currently running at 4.4 per cent.<\/p>\n<figure id=\"attachment_4839243\" class=\"wp-caption alignnone\"><a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2022\/11\/03\/us.fed_-1200x800.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy size-medium wp-image-4839243\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/02\/us.fed_-600x400-1.jpg\" alt=\"us.fed\" width=\"600\" height=\"400\"   style=\"display:none\"><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4839243\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/02\/us.fed_-600x400-1.jpg\" alt=\"us.fed\" width=\"600\" height=\"400\" \/><\/noscript><\/figcaption><\/a> After announcing a rate rise in New York City on Nov. 2, 2022 by the Federal Reserve chairman Jerome Powell, traders work on the New York Stock Exchange floor. (Seth Wenig\/AP Photo)<\/figure>\n<p>Asked if there are any threats to the Fed\u2019s inflation-busting quantitative tightening (QT) campaign, Powell stated there are elements that are out of the central bank\u2019s control\u2014such as the war in Ukraine and the reopening of China\u2019s economy.<\/p>\n<h2>Market Reaction<\/h2>\n<p>The Fed Chair assured markets that it is not the institution\u2019s goal to surprise investors.<\/p>\n<p>Before Powell\u2019s remarks on Tuesday, the financial markets were treading water. The Fed chief said that inflation is declining and the benchmark indexes rose during Powell&#8217;s speech.<\/p>\n<p>However, stocks turned negative again when investors heard Powell confirm that more rate hikes would likely happen, iterating what was noted in last week\u2019s Federal Open Market Committee (FOMC) <a href=\"https:\/\/www.federalreserve.gov\/newsevents\/pressreleases\/monetary20230201a.htm\">Policy statement<\/a>.<\/p>\n<p>\u201cIf we continue to get, for example, strong labor market reports or higher inflation reports, it may well be the case that we have to do more and raise rates more than is priced in,\u201d He explained.<\/p>\n<p>\u201cI think there\u2019s been an expectation that it\u2019ll go away quickly and painlessly, and I don\u2019t think that\u2019s at all guaranteed. That\u2019s not the base case,\u201d Powell also added. \u201cThe base case is \u2026 that it will take some time. And we\u2019ll have to do more rate increases, and then we\u2019ll have to look around to see whether we\u2019ve done enough.\u201d<\/p>\n<p>Market estimates were surpassed by the addition of 517,000 new jobs to the U.S. economy in January. The unemployment rate dropped to 3.4 percent.<\/p>\n<p>The Dow Jones Industrial Average fell by 0.6 percent, while the S&#038;P 500 lost about 0.4 percent and the Nasdaq Composite Index dropped 0.25 percent.<\/p>\n<p>Treasuries were mixed. The benchmark 10-year yield rose more than three basis points to 3.66 per cent.<\/p>\n<p>The U.S. Dollar Index or DXY, which measures the greenback in relation to a basket of currencies and trades flat, hovering around 103.60.<\/p>\n<p>On March 21 and 22, the next FOMC policy meeting is scheduled. According to the FOMC, it is expected that officials will increase the benchmark fed funds rate 25 basis points to a range between 4.75 percent to 5.00 percent. <a href=\"https:\/\/www.cmegroup.com\/markets\/interest-rates\/cme-fedwatch-tool.html\">CME Group FedWatch Tool<\/a>.<\/p>\n<h2>Debt Ceiling<\/h2>\n<p>Powell answered a question about the U.S. debt limit and said that it was a fiscal issue under the control of Congress and Treasury Department.<\/p>\n<p>Powell expressed hope that Congress would vote for an increase in the debt ceiling to allow the federal government to pay its entire bills. He noted, however, that the central bank doesn&#8217;t possess the necessary resources to pay all of its bills. \u201cability to shield the financial markets or the economy from the consequences\u201d Increase the debt limit.<\/p>\n<p>The U.S. government reached its $31.4 trillion debt ceiling last month. Democrats and Republicans have been stuck at a halt ever since. The White House stated that there would be no negotiations to increase the debt limit, but GOP lawmakers argue that it is irresponsible to refrain from addressing Washington\u2019s immense spending and debt levels.<\/p>\n<p>Powell claimed that the federal government is in an \u201cunsustainable fiscal path.\u201d<\/p>\n<p>\u201cThat has been the case for some time, and it\u2019s something we will have to deal with; it is better to deal with it sooner rather than later,\u201d Powell also added.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The United States is monitoring disinflation in the national economy but \u201cit has a long way to go\u201d Before price stability can be achieved, it is important to: Federal Reserve Chair Jerome Powell. On Tuesday, the Fed chair spoke at the Economic Club of Washington and acknowledged that the country was in the \u201cvery early &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1839196,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[17988,3755,5184,5487,7498,4004,8201,5708,5115,8975,7238],"class_list":["post-1839193","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-unsustainable","tag-calls","tag-chair","tag-debt","tag-fed","tag-fight","tag-go","tag-inflation","tag-long","tag-powell","tag-u-s"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1839193","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1839193"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1839193\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1839196"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1839193"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1839193"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1839193"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}