the Federal Reserve announces a drop in support for the US economy

Federal Reserve Chairman Jerome Powell does not see sustained inflation and does not want to raise rates for fear of stopping growth.

Jerome Powell, the chairman of the Fed, the American Federal Reserve, thinks that unemployment is reduced enough in the United States to be able to start reducing this year the massive support for the economy put in place since the start of the pandemic of Covid-19 by the repurchase of the debt of banks and companies. He did not consider the Delta variant to be a major obstacle to recovery.

This moderate Republican does not detect overheating either: he believes that inflation in the United States is temporary and does not want to raise the key rates of the central bank so as not to break the recovery. These are the lessons of the long-awaited speech held on Friday, August 27, by the chairman of the Federal Reserve, the American central bank, at the forum in Jackson Hole, Wyoming, which was held at a distance due to the pandemic .

he measured message satisfied the financial markets, which ended the day higher (+ 0.88% for the S&P 500 and + 1.23% for the Nasdaq, the technology-rich index), once again breaking their historic records. . The S&P 500 has gained 20% year-to-date, the Nasdaq 17.4%.

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