Fed Chairman Jerome Powell said he still sees interest rate hikes coming, despite the plausible economic impacts the Russia-Ukraine War could have on our nation’s economy. He said, “The implications for the U.S. economy are highly uncertain, and we will be monitoring the situation closely.” With inflation seeming to be ever-growing, President Biden unveiled his latest plans to combat it, which included asking companies to lower their costs, not their wages, and asking car and tech industries to bring their supply chains back home and make both vehicles and semiconductors on U.S. soil.
Fed Chair Powell notes ‘highly uncertain’ Ukraine impact, but says rate hikes are still coming
Federal Reserve Chairman Jerome Powell still sees interest rate hikes coming, but noted Wednesday that the Russia-Ukraine war has injected uncertainty into the outlook.
In remarks prepared for dual appearances this week before House and Senate committees in Congress, the central bank chief acknowledged the “tremendous hardship” the Russian invasion of Ukraine is causing.
“The implications for the U.S. economy are highly uncertain, and we will be monitoring the situation closely,” Powell said.
“The near-term effects on the U.S. economy of the invasion of Ukraine, the ongoing war, the sanctions, and of events to come, remain highly uncertain,” he added. “Making appropriate monetary policy in this environment requires a recognition that the economy evolves in unexpected ways. We will need to be nimble in responding to incoming data and the evolving outlook.”
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CNN Business/Anneken Tappe
Here’s how President Biden wants to fight inflation
Rising prices on everything from food to gasoline are hurting Americans. Now the White House has unveiled a plan to fight inflation, President Joe Biden said during Tuesday’s State of the Union address.
“Too many families are struggling to keep up with their bills,” Biden said, noting that soaring costs are keeping workers from reaping the benefits of the strong labor market and rising wages. “I get it. That’s why my top priority is getting prices under control.”
Inflation in America is higher than it has been at any point in nearly 40 years. Two of the most-watched inflation indicators — the Labor Department’s consumer price index and the Commerce Department’s personal consumption expenditure price index — hit their highest level since 1982 in the year ended January.
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MarketWatch via Flash News11/Shalini Nagarajan
Retirees: Watch out for your pensions – inflation isn’t just affecting grocery bills
Inflation creeps into many facets of retiree spending, together with grocery payments, fuel and medical gear – it could actually additionally damage their retirement earnings too, even when they’re fortunate sufficient to have a pension.
The inflation charge, hovering at a 40-year excessive round 7.5%, has Americans fearful. Households are already spending an additional $3,000 a year due to inflation, in accordance with one report, and the poorest of Americans are struggling most by the elevated costs.
Although many corporations have moved away from pensions, the fortunate staff who do nonetheless have one won’t need to rely so closely on that earnings of their retirements. The greatest technique can be to have a number of sources of earnings in retirement.
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