Fed Chairman Jerome Powell is set to testify in front of Congress later today. Reports indicate he’s prepared to announce that the Fed will take steps to ensure high inflation will not be allowed to put down roots in our economy. “We will use our tools to support the economy and a strong labor market and to prevent higher inflation from becoming entrenched,” he said in a statement before the hearing. While inflation has taken and will continue to take its toll on our economy, the CEO of JP Morgan Chase says the U.S. is headed for the best economic growth in decades.

 

CNN Business/Matt Egan
Jerome Powell’s pitch for a second term: America can’t afford runaway inflation

Federal Reserve Chairman Jerome Powell is pledging not to allow inflation to become ingrained in the American economy, according to prepared remarks released on Monday.

“We know that high inflation exacts a toll, particularly for those less able to meet the higher costs of essentials like food, housing and transportation,” Powell said in the remarks released ahead of his confirmation hearing on Tuesday.

Powell, who President Joe Biden has nominated to another four-year term to run the Fed, said the US central bank is “strongly committed” to achieving its goals of maximum employment and price stability.

“We will use our tools to support the economy and a strong labor market and to prevent higher inflation from becoming entrenched,” said Powell.

You can read the entire article, here.

 

CNBC/Hugh Son
Jamie Dimon sees the best economic growth in decades, more than 4 Fed rate hikes this year

Jamie Dimon said the U.S. is headed for the best economic growth in decades.

“We’re going to have the best growth we’ve ever had this year, I think since maybe sometime after the Great Depression,” Dimon told CNBC’s Bertha Coombs during the 40th Annual J.P. Morgan Healthcare Conference. “Next year will be pretty good too.”

Dimon, the longtime CEO and chairman of JPMorgan Chase, said his confidence stems from the robust balance sheet of the American consumer. JPMorgan is the biggest U.S. bank by assets and has relationships with half of the country’s households.

“The consumer balance sheet has never been in better shape; they’re spending 25% more today than pre-Covid,” Dimon said. “Their debt-service ratio is better than it’s been since we’ve been keeping records for 50 years.”

Read the full story, here.

 

Kitco News/Jim Wyckoff
Price advances for gold, silver amid bullish outside forces

Gold and silver futures prices are moderately up in early U.S. action Tuesday, supported by positive daily outside markets that include higher crude oil prices, a weaker U.S. dollar index and a slight drop in U.S. Treasury yields. February gold futures were last up $9.40 at $1,808.10 and March Comex silver was last up $0.233 at $22.69 an ounce.

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Traders and investors are more cautious this week, trying to adjust to a marketplace of tighter central bank monetary policies in 2022, amid rising inflation.

Federal Reserve Chairman Jerome Powell is scheduled to testify to a Senate banking committee today, regarding his nomination for a second term as Fed chair. He will surely be asked questions about the trajectory of Fed monetary policy and inflation prospects.

The U.S. data point of the week will be Wednesday’s consumer price index report for December, which is expected to come in at up 7.1%, year-on-year.

You can read the full story, here.

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