ABA-Powell, Yellen Discuss Persistent Inflation, Systemic Risk.

ENPNewswire-September 29, 2021--ABA-Powell, Yellen Discuss Persistent Inflation, Systemic Risk

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Release date- 28092021 - Higher inflation rates 'will likely remain so in the coming months,' Federal Reserve Chairman Jerome Powell acknowledged today in testimony before the Senate Banking Committee.

He noted that the effects of inflation on the economy 'have been larger and longer-lasting than anticipated,' but added that 'they will abate,' and begin to fall back toward the Fed's longer-run 2% target.

Powell attributed much of these upward pressures on prices to persistent supply chain issues, noting that 'this is really a mismatch between demand and supply. We need those supply blockages to abate before inflation can come down.' Meanwhile, Treasury Secretary Janet Yellen expressed her view that inflation at year-end would be 'probably closer to 4%. That already almost must be the case, based on what's happened this year.'

Powell and Yellen also discussed what they view as the most significant risks to the economy beyond the COVID-19 pandemic. Powell flagged cyber risk as the most significant threat to the banking industry. 'We have a very...

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