Powell’s Pummel 📈
Jerome Powell is a name that has become infamous across the investing community; whether you’re reading an article or browsing through Wall Street Bets, Jerome Powell has been a critical player, steering the US economy during the heights of the COVID-19 pandemic. Most recently, Powell, the Federal Reserve Chairman, gave the country a dire warning: explaining that the US has a “long way” to go to return to full employment and that any optimism on the recovery from COVID-19 must come with a caution. Although Powell did not comment on exactly how much stimulus the Biden administration should pass, he did express that inflation will not become a threat; Powell’s view differs from a common political stance viewing Biden’s plan as excessive and something that could overheat the U.S. economy.
Powell expressed these thoughts, explaining, “While we should not underestimate the challenges we currently face, developments point to an improved outlook for later this year,” and “Forecasters need to be humble and have a great deal to be humble about, frankly, if it does turn out that unwanted inflation pressures arise and they’re persistent, then we have the tools to address that, and we will.” All in all, the political debates surrounding inflation will likely continue to rage on. But the one thing that’s agreed upon is that the future is still uncertain, and we have a long way to go before a complete recovery. Markets seem to be responding neither bullish nor bearish, with stocks ending mixed yesterday.
Do you think inflation is a real concern for current stimulus levels, or is it needed for the American economy to recover properly?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.