[뉴욕=뉴스핌] Correspondent Kim Min-jung = 4th (local time) Jerome Powell, chairman of the Federal Reserve System (Fed), said that inflation (inflation) pressure could be formed amid economic reopening, government bond yields surged and stock prices were falling sharply. .
Powell attended the Wall Street Journal (WSJ) conference on the same day and said, “We look forward to the reopening of the economy and hopefully improving the economy. This could create some inflation pressure.”
The mayor reacted negatively to Chairman Powell’s remarks that day. International benchmark 10-year Treasury yields rose above 1.5% during the intraday, and the three indexes of the New York Stock Exchange, which had been rising, also turned downward. The Standard & Poor’s (S&P) 500 index fell 1.5% during the intraday, and the Nasdaq composite index, which focuses on technology stocks, also fell 2.4%.
However, Chairman Powell evaluated that the current monetary policy easing was appropriate and emphasized patience with regard to monetary policy.
“There is a reasonable reason to think we will make further progress soon,” said Powell, referring to the expansion of vaccination for the novel coronavirus (Corona 19) and financial stimulus.
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| Jerome Powell President of the Federal Reserve System[사진=로이터 뉴스핌] 2020.11.13 [email protected] |
“But if that happens, it will take a significant amount of time,” said Powell. “We want the job market to match our assessment of full employment.”
In this regard, Powell said the Fed is hoping that wages and job growth will spread to minorities and not just want a low unemployment rate.
“I want to be clear on this,” Powell added. “I expect us to be patient.” In the end, it is said that even if the economy improves to some extent, it will be cautious to taper (reduce asset purchases) or raise the benchmark interest rate to zero.
He also commented on signs of tightening in some financial markets, such as the recent surge in government bond yields. Powell said the rise in Treasury bond yields was notable and attracted his attention, but said it was not a disorderly move and that it did not raise long-term interest rates enough for the Fed to intervene.
Next, Chairman Powell emphasized again, “Our current policy stance is appropriate.”
“It is not appropriate to isolate a particular interest rate or price,” said Powell. I think it is.”
Powell added, “I would be concerned if an unordered condition in the market develops or if financial conditions continue to tighten.”