2/23, 4:49 PM (Source: TeleTrader)
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Powell doesn't see how spending burst can push inflation

Federal Reserve Chair Jerome Powell said on Tuesday that he doesn't see how a burst in fiscal support or spending could lead to high inflation in the United States.

However, Powell said that the Fed has tools to deal with "unwanted" inflation if it becomes needed. Commenting on the recovery, he reiterated that the economy would rebound once the coronavirus pandemic gets under control.

Spending is expected to start turning towards pre-crisis levels in the second half of the year, he concluded.

Breaking the News / ND