Today: 14 July 2025
22 June 2021
1 min read

Pandemic still Threatens Economy

US Federal Reserve Chair Jerome Powell has said the Covid-19 pandemic continues to pose risks to the US economic outlook as the pace of vaccination has slowed.

“Progress on vaccinations has limited the spread of Covid-19 and will likely continue to reduce the effects of the public health crisis on the economy,” Powell said in written testimony released Monday afternoon on the Fed’s website, which was prepared for a Tuesday hearing before the House Select Subcommittee on the Coronavirus Crisis, Xinhua reported.

“However, the pace of vaccinations has slowed and new strains of the virus remain a risk. Continued progress on vaccinations will support a return to more normal economic conditions,” he said.

Powell’s testimony came as public health experts warned that the highly contagious Delta variant continues threatening the US, especially in states with the lowest vaccination numbers.

The Delta variant, which is believed to be more transmissible and cause more severe disease, could cause an upsurge in infections, but the levels will vary depending on the rates of vaccination in each area, said Scott Gottlieb, former commissioner of the US Food and Drug Administration.

Powell also said in testimony that US inflation has increased notably in recent months as the economy continues to reopen.

“This reflects, in part, the very low readings from early in the pandemic falling out of the calculation; the pass-through of past increases in oil prices to consumer energy prices; the rebound in spending as the economy continues to reopen; and the exacerbating factor of supply bottlenecks,” he explained.

“As these transitory supply effects abate, inflation is expected to drop back toward our longer-run goal,” said the Fed chair.

Core personal consumption expenditures price index, the Fed’s preferred inflation measure, is expected to rise to 3 per cent by end of 2021, and then decelerate to 2.1 per cent over the next two years, according to the Fed’s latest Summary of Economic Projections released last week.

Read More:

https://londondailydigital.com/2021/06/22/covid-19-leading-to-cognitive-issues/
https://londondailydigital.com/2021/06/21/third-wave-of-covid-definitely-under-way/
Previous Story

A New Era of Progress At Jammu & Kashmir

Next Story

Israel FM to visit UAE in first official tour

Latest from -Top News

Beijing Sidelined in Mideast Clash

Yet when Iran came under a massive Israeli attack — supported by U.S. air strikes targeting its nuclear infrastructure — China’s reaction was mostly symbolic…reports Asian Lite News The recent conflict between

India, Saudi Expand Sectoral Ties

Both sides underscored their commitment to broadening the scope of bilateral relations…reports Asian Lite News Union Health and Chemicals & Fertilisers Minister J.P. Nadda’s visit to Dammam and Riyadh underscored the deepening

UN slams resumption of Houthi attacks

In the first such incidents for more than six months, the Yemeni group seized and then scuttled two Liberian-flagged bulk carriers operated by Greek shipping firms, leaving four seafarers presumed dead and

Aboulela awarded PEN Pinter prize

Born to an Egyptian mother and Sudanese father, Aboulela grew up in a Khartoum where British colonial echoes mingled with the call to prayer Sudanese-British novelist Leila Aboulela has been named winner

STORY OF SARA

Gaza’s young amputees struggle to heal amid war, medical collapse On the dusty floor of a makeshift tent in the Sheikh Radwan neighborhood of Gaza City, 10-year-old Sara al-Borsh clutches a pen
Go toTop