NEWSLETTER
Thursday / September 29Sep 29
Thursday / June 23
Powell testimony to US Senate
US Federal Reserve Chairman Jerome Powell told congressional lawmakers Wednesday that the central bank is determined to bring down inflation and has the ability to make that happen.
Fed chief said in remarks for the Senate Banking Committee that he believes the economy is strong, he acknowledged a recession could happen.
“It’s certainly a possibility. It’s not our intended outcome at all, but it’s certainly a possibility, and frankly the events of the last few months around the world have made it more difficult for us to achieve what we want, which is 2% inflation and still a strong labor market,” he said.
Achieving a “soft landing,” in which policy tightens without severe economic circumstances such as a recession, will be difficult, he added.
“It is our goal. It is going to be very challenging. It has been made significantly more challenging by the events of the last few months, thinking here of the war and commodities prices and further problems with supply chains.” Powell said. “The question of whether we’re able to accomplish that is going to depend to some extent on factors that we don’t control.”
Along with expressing resolve on inflation, Powell said economic conditions are generally favorable, with a strong labor market and persistently high demand.
Republican senators pressed Powell to clamp down on inflation, and asked whether White House policies such as regulations on the energy industry are intensifying price pressures.
“Inflation’s hitting my people so hard they’re coughing up bones,” said Senator John Kennedy, Repulican from Louisiana.
“We got a hell of a mess right now,” Kennedy added. “You’re the most powerful man in the United States, maybe in the world.”
US-Taiwan relations
The United States should "urgently" start talks with Taiwan on a free trade agreement with the aim to present a completed text for passage in 2024, the American Chamber of Commerce in Taiwan said in an annual policy paper published on Wednesday.
Taiwan has long campaigned for such a deal, in what would be a strong show of support for the Chinese-claimed island in the face of unrelenting diplomatic and military pressure from Beijing. It says it is a reliable partner for the United States with shared democratic values.
AmCham Taiwan said they called "urgently" for the administration to start talks on a Bilateral Trade Agreement (BTA) with Taiwan, with a "completed text presented for passage in 2024".
Such a deal would encourage other like-minded partners to enter into similar arrangements with Taiwan, further open Taiwan's economy and "effectively" address the economic and security implications of the island's key chip industry.
US stocks
Major US stocks ended down slightly Wednesday. The S&P 500 energy sector was down 4.2%.
The dollar fell alongside U.S. Treasury yields on fears the U.S. economy could slip into recession.
The Dow Jones Industrial Average fell 47.12 points, or 0.15%, to 30,483.13, the S&P 500 lost 4.9 points, or 0.13%, to 3,759.89 and the Nasdaq Composite dropped 16.22 points, or 0.15%, to 11,053.08.
Biden blames Putin, urges Congress oil action
US President Joe Biden on Wednesday called for a three-month suspension of the federal gasoline tax to combat record prices, but opposition from lawmakers within his own party shows the request may never be met.
Biden commented that a suspension of the 18.4 cents per gallon tax was not enough.
The president also urged states to temporarily suspend state fuel taxes, which are often higher than federal rates.
He is also asking major oil companies to suggest ideas on how to bring back idled refining capacity when they meet with Energy Secretary Jennifer Granholm on Thursday.
US Federal Reserve Chairman Jerome Powell told congressional lawmakers Wednesday that the central bank is determined to bring down inflation and has the ability to make that happen.
Fed chief said in remarks for the Senate Banking Committee that he believes the economy is strong, he acknowledged a recession could happen.
“It’s certainly a possibility. It’s not our intended outcome at all, but it’s certainly a possibility, and frankly the events of the last few months around the world have made it more difficult for us to achieve what we want, which is 2% inflation and still a strong labor market,” he said.
Achieving a “soft landing,” in which policy tightens without severe economic circumstances such as a recession, will be difficult, he added.
“It is our goal. It is going to be very challenging. It has been made significantly more challenging by the events of the last few months, thinking here of the war and commodities prices and further problems with supply chains.” Powell said. “The question of whether we’re able to accomplish that is going to depend to some extent on factors that we don’t control.”
Along with expressing resolve on inflation, Powell said economic conditions are generally favorable, with a strong labor market and persistently high demand.
Republican senators pressed Powell to clamp down on inflation, and asked whether White House policies such as regulations on the energy industry are intensifying price pressures.
“Inflation’s hitting my people so hard they’re coughing up bones,” said Senator John Kennedy, Repulican from Louisiana.
“We got a hell of a mess right now,” Kennedy added. “You’re the most powerful man in the United States, maybe in the world.”
US-Taiwan relations
The United States should "urgently" start talks with Taiwan on a free trade agreement with the aim to present a completed text for passage in 2024, the American Chamber of Commerce in Taiwan said in an annual policy paper published on Wednesday.
Taiwan has long campaigned for such a deal, in what would be a strong show of support for the Chinese-claimed island in the face of unrelenting diplomatic and military pressure from Beijing. It says it is a reliable partner for the United States with shared democratic values.
AmCham Taiwan said they called "urgently" for the administration to start talks on a Bilateral Trade Agreement (BTA) with Taiwan, with a "completed text presented for passage in 2024".
Such a deal would encourage other like-minded partners to enter into similar arrangements with Taiwan, further open Taiwan's economy and "effectively" address the economic and security implications of the island's key chip industry.
US stocks
Major US stocks ended down slightly Wednesday. The S&P 500 energy sector was down 4.2%.
The dollar fell alongside U.S. Treasury yields on fears the U.S. economy could slip into recession.
The Dow Jones Industrial Average fell 47.12 points, or 0.15%, to 30,483.13, the S&P 500 lost 4.9 points, or 0.13%, to 3,759.89 and the Nasdaq Composite dropped 16.22 points, or 0.15%, to 11,053.08.
Biden blames Putin, urges Congress oil action
US President Joe Biden on Wednesday called for a three-month suspension of the federal gasoline tax to combat record prices, but opposition from lawmakers within his own party shows the request may never be met.
Biden commented that a suspension of the 18.4 cents per gallon tax was not enough.
The president also urged states to temporarily suspend state fuel taxes, which are often higher than federal rates.
He is also asking major oil companies to suggest ideas on how to bring back idled refining capacity when they meet with Energy Secretary Jennifer Granholm on Thursday.
