+22 C°
Traffic jam:   0

Stock indices rise after Jerome Powell's statements to Congress

23 June 2021
2 min.
Stock indices rise after Jerome Powell's statements to Congress

US inflation surge

Fed Chairman Jerome Powell, speaking to a House subcommittee, reiterated that the current spike in US inflation is temporary and due to last year's fall in prices. The Fed will wait for "actual inflation" before raising interest rates.

Major US stock indices rose on Tuesday after Fed Chairman Jerome Powell's statements, during his address to a House subcommittee, calmed markets a little.

The S&P 500 Index was up 0.51% at the close of trading on Tuesday, continuing a 0.24% gain in non-trading hours, the Dow Jones was up 0.2% and 0.33% over the same periods, the Nasdaq 100: 0.94% and 0.3% respectively. The Nasdaq Composite index added almost 0.8% on Tuesday.

Powell's key talking points in his report to lawmakers were as follows:

  • Powell said it was "very, very unlikely" that the 5% jump in inflation in May was a repeat of 1970s inflation, as current inflation is temporary.
  • The Fed noted that a large proportion of the price increase came from used cars, airline tickets and hotel rooms areas where prices fell heavily a year ago. The current inflation rate is a reflection of this contrasting price comparison with the last crisis year.

It is worth noting that the US economy is currently growing and there has been a recovery in pent-up demand in the tourism sector.

Jerome Powell said: "Over time these factors will diminish and then inflation will move towards the Fed's inflation target of 2%".

The Dallas Federal Reserve estimates that around 2.6 million people will retire between February 2020 and April 2021.

Powell expects statistics on new job additions in the US over the past two months to show growth.

The announcements give more positive signals to the stock market, which fell after reports of the results of the June Federal Open Market Committee (FOMC) meetings of the Fed.

The US central bank last week raised its forecast for overall inflation from 2.4% to 3.4% for 2021, the biggest increase in consumer prices since 2008.

In addition, Fed policymakers began discussing a reduction in the quantitative easing programme and said they might increase the benchmark interest rate twice in 2023, earlier than they had forecast in March.

Persons1 and Companies3 in the news

6th Chair of the Federal Reserve
1 place
1 place
Dow Jones
2 place


Rating companies
173 Mention
Dow Jones
130 Mention
57 Mention
51 Mention
45 Mention
44 Mention
35 Mention


News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Died this year
Born this year