Reducing high inflation most important task: US Fed Guv

40

Washington, Jan 14 | US Federal Reserve Governor Lael Brainard said that reducing high inflation is the central bank’s “most important task”.

“Inflation is too high and working people around the country are concerned about how far their paychecks will go,” Brainard, President Joe Biden’s nominee to serve as the central bank’s vice chair, said at her confirmation hearing before the Senate Banking Committee.

“Our monetary policy is focused on getting inflation back down to 2 per cent while sustaining a recovery that includes everyone. This is our most important task,” Brainard said, expecting US inflation to remain high throughout the first two quarters of the year, reports Xinhua news agency.

The consumer price index rose 7 per cent in December 2021 from a year earlier, the largest 12-month increase since June 1982, according to the Labour Department.

“I think, you know, we have a set of tools, they’re very effective, and we will use them to bring inflation back down,” Brainard said, adding the central bank is taking a number of actions.

“We’ve already decided to end asset purchases in the first quarter. You’ve seen that the committee has projected several hikes over the course of the year,” she said, signalling that the central bank could start raising interest rates as soon as March.

“We will be in a position to do that, I think, as soon as asset purchases are terminated. And we will simply have to see what the data requires over the course of the year,” she said.

The Fed is on track to conclude its asset purchase program in mid-March as it exits from the ultra-loose monetary policy enacted at the start of the pandemic.

Brainard’s remarks came after Fed Chair Jerome Powell said earlier this week that the central bank would have to raise interest rates more if inflation remains elevated.

“If we see inflation persisting at high levels longer than expected, if we have to raise interest rates more over time, we will,” Powell told lawmakers.

Biden announced last November that he intended to nominate Powell for a second term as Fed chair and to nominate Brainard as vice chair.

He is also expected to soon nominate three new governors to fill remaining vacancies on the seven-member Fed board, according to local media.

Source: IANS

Next Story

Share Market Closing Bell: Nifty ends below 16,150, Sensex falls 236 pts

Share Market Closing Bell: Nifty ends below 16,150, Sensex falls 236 pts

The NIFTY 50 had a positive opening and made an intraday high at 16262.80 level but showed selling pressure from the top and made an intraday low at 16078.60 level and closed the session at 16125.15 level with a loss of 89.55 points However, Bank nifty closed the session at 34290 level with a gain of 42 points. VIX closed at 25.70 up by 9.83%.

33 stocks out of NIFTY 50 closed in Red which suggest broad based selling. Nifty Healthcare, FMCG, IT, capital goods indices down 1 percent each while Nifty Auto & Bank ended in Green. Nifty Stocks like DRREDDY, GNFC, POWERGRID, KOTAKBANK were the top gainers, While DIVISLAB, TECHM, GRASIM & HINDUNILVR were top losers. The Nifty has confirmed the shooting star kind of pattern on a daily time frame which indicates downside movement momentum for an upcoming session.

Moreover, from the last 14 days Nifty has been trading in a range of 15750-16410 levels, either side breakout can direct further direction. In addition, Nifty has given a closing below 21-Day Moving Average which indicates weakness in the Nifty.

However, the momentum indicators MACD & Stochastic were trading with a positive crossover & reversed from oversold zone on a daily chart which suggest a northward journey in the Nifty. The Nifty may find Strong support around 16000 levels, while on the upside 16300 may act as an immediate hurdle. On the other hand, Bank nifty has support at 33600 levels while resistance at 34800 levels.

Palak Kothari
Research Associate
Choice Broking

Source: Choice India

LEAVE A REPLY

Please enter your comment!
Please enter your name here