Happy Wednesday and welcome to On The Money, where there is always more than one specter of happiness. I’m Sylvan Lane, and here’s your evening guide to everything to do with your bills, your bank account, and your bottom line.
THE BIG DEALâ Fed chief dismisses fears of prolonged inflation: Federal Reserve Chairman Jerome Powell said on Wednesday the United States was on track for a strong rebound from the coronavirus pandemic even as the economy hits inflationary speed bumps on the road to full recovery.
Powell spoke to reporters after the Federal Open Market Committee (FOMC) – the Fed’s governing body for monetary policy – announced it would keep its base interest rate range 0 to 0, 25% and would continue to buy $ 120 billion in treasury and mortgage bonds each month.
- During the press conference, Powell allayed fears that the recent spike in inflation would force the Fed to put the brakes on with an earlier-than-expected interest rate hike.
- The Fed chief said that while price increases could continue to rise, the unrepaired damage to the U.S. economy from a year of COVID-19 lockdown makes a dangerous spiral of inflation unlikely.
“If we see inflation expectations or inflation rising in a way that is truly materially superior to what we consider consistent with our goals and persistently, we will not hesitate to use our tools to address it. “said Powell. âWe don’t expect that, however. This is not our base scenario and we are joined by many other forecasters, âhe added. I have more here.
The background: The inflation debate comes as President BidenJoe BidenMellman: Trump voters hold on to 2020 story FDA clears yet another batch of vaccine J&J Cotton warns China collecting DNA from athletes at 2022 Olympics MORE and most Congressional Democrats are looking to spend big on an infrastructure package, sparking opposition from Republicans, who argue that more stimulus will only push prices up.
- The United States has still lost more than 7 million jobs since February 2020. Millions of Americans still have not been able to return to the workforce due to constraints linked to the pandemic, and many fear returning to the workplace. work with about 50% of unvaccinated American adults. against COVID-19.
- Despite this, larger-than-expected increases in several annual inflation measures have exacerbated concerns among Republican lawmakers and budget hawks about the combination of monetary and fiscal stimulus.
“Isn’t it up to the President, the US Secretary of the Treasury and even Congress to take the inflation risk seriously by pursuing responsible fiscal policies, and not just expect the Fed to fix a mess after the fact?” ? asked the senator. Chuck grassleyChuck GrassleyOn The Money: Schumer to start reconciliation process on Wednesday | Four states emerge as test case for removal of unemployment benefits McConnell insists on ‘real consequences’ of disclosure of tax data First Great Democrat announces 2022 offer for governor of Iowa MORE (R-Iowa) Secretary of the Treasury Janet YellenJanet Louise YellenOn the money: Schumer will start a reconciliation process on Wednesday | Four states emerge as test cases for cutting unemployment benefits The Hill’s 12:30 p.m. report: Biden prepares for Putin meeting Watch live: Harris, Yellen deliver remarks on helping small businesses MORE during a Wednesday hearing before the Senate Finance Committee.
LEAD THE DAY
The bipartisan infrastructure group grows to 20 senators: A group of 10 other senators on Wednesday announced their support for a five-year, $ 974 billion bipartisan infrastructure framework unveiled last week, giving the proposal a crucial political boost in time.
“We support this bipartisan framework which provides a historic investment in our country’s basic infrastructure needs without raising taxes,” the group of 20 senators said in a joint statement.
News of the Republicans’ additional support now means that a bipartisan infrastructure bill has a good chance of garnering 10 GOP votes and overcoming an obstruction. Alexander Bolton from the Hill break it down here.
Biden set to undo Trump’s trade legacy with EU deal: President Biden’s recently unveiled deal to end a long-standing trade dispute with Europe marks his first major success in overthrowing the former President TrumpDonald Trump Kushner lands deal on book, slated for release in 2022 Biden set to undo Trump’s trade legacy with EU deal Progressives rave about Harrison’s debut at DNC ââPLUSthe business legacy of.
- Trump left office after starting trade wars with allies and opponents of the United States, imposing tariffs on hundreds of billions of dollars in imports.
- Both Democrats and Republicans have criticized Trump’s approach, calling for a more coordinated trade policy that has worked in tandem with allies to put pressure on China.
- Biden sought to highlight the change when the deal was announced on Tuesday.
âThe US and the EU will work together in specific ways that reflect our high standards, including collaborating on inward and outward investment and technology transfer,â he said. “It’s a model we can build on for other challenges posed by China’s economic model.” Hill’s Niv Elis tells us how we got here.
AT THE END OF TOMORROW:
GOOD TO KNOW
- Some Congressional Democrats who argued forcefully for emergency unemployment benefits earlier this year are now signaling they are prepared to leave a weekly supplement expire at the beginning of September.
- No demographic group has left the workforce at higher rates during the pandemic than Latinas, according to new research from the Latino Policy and Politics Initiative at the University of California-Los Angeles.
- Treasury Secretary Janet Yellen said on Wednesday the disclosure of confidential taxpayer data to ProPublica was a “very serious situation” and that it would keep Congress informed of inquiries into the matter.
- Kristalina Georgieva, director of the International Monetary Fund (IMF), told an event on Wednesday that vaccine policy should be the top economic priority for 2021.
- Morgan Stanley CEO said this week he expects company employees to return in the office in New York as vaccination rates continue to rise.