Fed Chairman Powell's promise to "prevent inflation from becoming permanent"

US Federal Reserve Chairman Jerome Powell stated that they will use the bank's tools to prevent high inflation from becoming permanent.

The Fed has released the text of the speech that Powell will deliver in the US Senate as part of his candidacy for a second term as Fed Chairman.

Accordingly, Powell stated that the US economy experienced a record-breaking 11-year growth on the eve of the Kovid-19 epidemic, and unemployment was at its lowest level in 50 years, but this picture changed almost overnight due to the epidemic.

Powell stated that the Fed has used all policy tools at its disposal against the economic effects of the Kovid-19 outbreak, and they are taking swift action to restore the flow of credit that is vital for households, communities and businesses and to stabilize the financial system.

Stating that the economy is growing at its fastest pace in recent years and the labor market is strong, Powell emphasized that the difficulties still continue.

"The post-pandemic economy may be different in some respects"
"Despite the ongoing epidemic, the economy has strengthened rapidly. This has caused persistent supply and demand imbalances and bottlenecks, and therefore high inflation," Powell said. made its assessment.

Stating that they are determined to achieve maximum employment and price stability targets, Powell said, "We will use our tools to support the economy and a strong labor market, and to prevent high inflation from becoming permanent." used the phrase.

Emphasizing that the post-pandemic economy may be different in some respects, it will be necessary to take these differences into account while pursuing goals, Powell stated that monetary policy should adopt a broad and forward-looking perspective by keeping up with the ever-developing economy.

Stating that they will be on the alert against new and existing threats, Powell said:

"We know that our decisions are important to every person, family, business and society across the country. I am determined to make these decisions with objectivity, honesty and impartiality, based on the best available evidence and a long tradition of monetary policy independence."

Jerome Powell's term as Fed Chair, which he started in 2018, will expire in February.

On November 22, 2021, US President Joe Biden nominated Powell for a second term as Fed Chairman.