The US economy is entering a new normal

The US economy is entering a new normal
The US economy is entering a new normal

LAST UPDATE: 21:40

US Federal Reserve Chairman Jerome Powell said today that the US economy may be entering a “new normal” after the disruption caused by the coronavirus pandemic.

“We continue to face a highly unusual set of disturbances,” Powell said during a Fed event in Washington.

In his brief greeting, Powell did not discuss the outlook for interest rates or offer more details about the economic outlook for the US economy.

US central bankers raised the key interest rate by 75 basis points for the third time in a row, in the most aggressive pace of tightening seen since the Fed fought inflation in the 1980s.

Powell and his colleagues are moving swiftly to reduce the highest inflation in nearly 40 years, having been slow to spot the threat of widening price pressures.

Critics have blasted them for this mistake, although inflation has also been exacerbated by Russia’s invasion of Ukraine, which has pushed up food and energy prices around the world.

US consumer prices rose 8.3% in the 12 months to August and officials have vowed to bring them down, even if that means hurting the US economy.

Officials see it as an effort to slow excess demand and bring the labor market back to “balance,” a euphemism that glosses over the fact that many people could lose their jobs in the process.

The labor market has so far remained strong, with unemployment at 3.7%, but policymakers this week predicted it would rise to around 4.4% next year as they continue to raise interest rates.

The article is in Greek

Tags: economy entering normal

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