Jerome Powell, Democrats dismiss inflation fears with stimulus bill
Added 02-23-21 09:22:02pm EST - “Democrats on Tuesday brushed aside Republicans' concerns about overheating the economy with the Biden administration's $1.9 trillion coronavirus relief bill, as Federal Reserve Chairman Jerome Powell signaled that the central bank…” - Washingtontimes.com
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Democrats on Tuesday brushed aside Republicans’ concerns about overheating the economy with the Biden administration’s $1.9 trillion coronavirus relief bill, as Federal Reserve Chairman Jerome Powell signaled that the central bank won’t pull back anytime soon on its own aggressive actions to aid the recovery.
Despite Republicans’ warnings of inflation and overheated asset prices after the U.S. money supply jumped 26% in the past year, Mr. Powell said harmful inflation “doesn’t seem likely.” He said inflation has averaged less than 2% annually for more than 25 years despite Washington’s increasingly massive budget deficits.
“We don’t really see how a burst of fiscal support or spending that doesn’t last for many years would actually change those inflation dynamics,” Mr. Powell told the Senate Committee on Banking, Housing and Urban Affairs.
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He indicated that the Fed will continue buying $120 billion per month in securities and mortgage-backed debt and will keep interest rates near zero. Mr. Powell said the economic recovery “remains uneven and far from complete, and the path ahead is uncertain.”
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