Powell expects higher job creation and lower inflation between now and the end of the year

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Washington, Jun 22 (EFE) .- The president of the Federal Reserve (Fed), Jerome Powell, assured this Tuesday that job creation in the United States will accelerate in the remainder of the year and once again insisted that the rise in prices is temporary due to the reactivation of the economy, and will “dilute over time.”

In his appearance before the subcommittee on the crisis generated by the pandemic in the House of Representatives, Powell insisted on the “sustained improvement” of the US economy in recent months, although he considered that the extraordinary measures of monetary stimulus.

The unemployment rate stood at 5.8% in May, but the generation of new jobs has been slower than expected, as the US economy still has about eight million fewer jobs than it did in February of 2020 when the covid-19 pandemic reached the country.

SLOW JOB CREATION

“I believe that the supply of workers and job creation will grow in the remainder of the year,” he told congressmen.

In Powell’s opinion, the slowdown responds to the persistent fear among workers about the virus, the fact that many schools in the country have not yet opened the help offered by the fiscal rescue package, which include higher unemployment benefits. Until September.

In any case, he stressed that the “extensive vaccination” in the country together with the “unprecedented actions of monetary and fiscal policy” have offered “strong support for the recovery.”

FEAR OF INFLATION

Most questions from lawmakers, especially Republicans, focused on the rebound in consumer prices, which in May posted a 5% year-on-year rise, the highest since 2008.

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Article source: https://es-us.finanzas.yahoo.com/

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