Rising US prices Fed chief is dampening Inflation concerns

Status: 23.06.2021 9:39 a.m.

The head of the US Federal Reserve sees the reason for the current high inflation primarily in the recovery of the economy. The unexpectedly strong effects would soon fade, Powell said.

By Torsten Teichmann, ARD studio Washington

The demand in many industries is greater than the supply, meanwhile the prices for raw materials in the USA are rising, employers are having difficulties filling positions: All these effects of the economic upswing at the end of the corona pandemic are stronger than assumed, the head of the Federal Reserve (Fed), Jerome Powell, granted. Nevertheless, there will be no inflation, as in the 1970s, Powell said at a hearing in the US House of Representatives. “These factors will fade over time and we will get back to where we want to go. We are watching this carefully,” he said.

Interest rate hikes planned for 2023

The goal is an inflation rate of just over two percent. In May there was inflation at five percent . The Fed announced last week by the end of 2023, the key interest rate is expected to be increased in two steps to want. But in the short term it remains in the range between 0 and 0.25 percent. Powell had to defend his monetary policy at the hearing in the House of Representatives. Republican MP Steve Scalise accused a visibly annoyed Fed chief that the cheap money policy was harmful to hard-working families.

Steve Scalise criticized Fed policies as harmful to families. Image: REUTERS

Powell replied that lower income groups in particular have not yet benefited from the upswing in the United States. “Real incomes at the lower end of the spectrum are stagnating compared to those at the top,” he said. “Mobility across all income groups has decreased in the US and is now behind that in most other industrialized countries.”

Fed expects economic growth of 6.5 percent

These differences would hold back the US economy and the country as a whole. And that although the Fed is currently assuming that the US economy will grow by 6.5 percent this year with the help of the government’s trillion-dollar stimulus packages

The sound becomes sharper Fed sees two rate hikes in 2023

Status: 16.06.2021 8:59 p.m.

As expected, the US Federal Reserve left its key interest rate unchanged. However, the loose monetary policy will not go on forever. The stock markets are falling, and the euro is also falling. Despite the waning corona pandemic and rising inflation rates, the US Federal Reserve continues to keep its key interest rate in a range between 0.00 and 0.25 percent. The monthly bond purchases of $ 120 billion are also expected to continue for the time being. At least until progress is made towards achieving the bank’s goals. In particular, this means “considerable progress in terms of price stability and employment”. This was stated by the monetary authorities after their two-day routine interest rate meeting in Washington. According to Fed Chairman Jerome Powell, the Fed is still a long way from achieving its goal: “But we are making good progress.” The bank continues to blame temporary factors for the recently stronger rise in inflation data. At the same time, she expects inflation to rise to 3.4 percent this year and drop to 2.2 percent in 2022. There is also increased economic activity and employment. Powell said the discussion about scaling back the extremely loose monetary policy had begun. The point is when it will reduce its regular bond purchases. However, Powell was not specific. Basically, the Fed chief said that if you will, you have talked about wanting to talk about the subject. With such cautious wording Powell should try to avoid panic-like reactions in the financial markets.

Two rate hikes envisaged in 2023

For the first time since the outbreak of the pandemic, however, the monetary authorities signaled that there could be two interest rate hikes of half a percentage point each in 2023. So far, the Fed’s interest rate projection provided for an unchanged monetary policy with a key interest rate close to zero. After all, seven monetary authorities are now even of the opinion that a tightening could come next year. Not only has the interest rate forecast been raised, expectations for economic growth and inflation are also higher in some cases. For this year, the Fed is expecting macroeconomic growth of 7.0 percent instead of the 6.5 percent previously expected.

Share prices are falling

Wall Street reacts with price losses, all leading stock indices give way in an initial reaction. The leading index Dow Jones lost around one percent, the other indices are slightly below. Prices are also falling on the bond market, with the yield on ten-year US government bonds increasing to 1.56 percent. The euro is losing significantly against the dollar and is currently trading at 1.2026 dollars, around one cent less than in today’s trading

Immediately, the sharing received the attention and “winged” compliments of the housewives for this girl.

When posting her dishes on social networks, Vu Giang received a rain of compliments from the sisters who love to cook. Most people think that 9X’s meals are very rich and varied, each meal is delicious and eye-catching.

Vu Huong Giang (26 years old, Son La), currently she is the owner of a milk tea shop.

Talking about her personal hobbies, Giang shared that cooking is her passion. Even though she is only in the kitchen all day, she is not bored. ‘For me, cooking brings joy, and helps people connect more with family. Family meals are not only for eating but also where members get together after working day ‘- 9X said.

Usually, each bowl of Huong Giang rice is made for 3-4 people. Although we always change the menu every day, there is a ‘immutable’ principle that 9X sets when cooking is that each plate of rice must have enough soup and savory dishes, have enough vegetables and protein. In addition, when cooking, 9X also has certain criteria for the meal to be always delicious and fresh. Typically, the food she will buy that day, limited to preserve.

In order to cook well, 9X also learns and learns more recipes on the Internet to be able to process many dishes that they like.

To make the meal less bored, 9X will often change dishes, making the meal always bring a fresh feeling.

Giang found himself quite leisurely in the cooking process. ‘I often go to the kitchen, so it’s pretty quick to arrange work in the kitchen. Before going to the market, I have to make a menu first to avoid going to the market but have to think about what to eat in order to save time. I cook most of the dishes that are easy to eat and easy to make so it is suitable for the whole family because many times I cook complicatedly with strange spices people will be difficult to eat ‘- 9X share.

On average, each tray of rice that Vu Giang makes has a price ranging from 70-150 thousand VND. Time to complete each tray of rice on average about 30 minutes – 1 hour thanks to her know how to arrange work in a scientific way. Any day making sophisticated dishes will take a little more time.

In addition to passion, the main motivation for Vu Giang to cook every day is seeing her husband and children eat well. ‘My daughter loves the food she makes. She will support her to do whatever she does and praise her. ‘ – The young mother excitedly shared.

Let’s take a look at the cozy rice dishes of the young mother 9X from Son La!

Nguyen Tinh

Photo: NVCC