On Tuesday afternoon, Chairman of the US Federal Reserve Jerome powell testified before the Senate banking committee, as part of his semiannual monetary policy report to congress.
Before his speech, fears had been making round with regards to the Biden administration’s stimulus package, and its potential to cause an increase in inflation. Powell however said that the Fed does not see inflation as a threat. He however assured that the Fed had the tools to deal with inflation if it did become a threat.
The Dow Jones Industrial Average bounced back from steep losses and closed the session in the green on Tuesday after Jerome Powell’s speech.
The blue-chip Dow wiped out a 360-point loss and closed 15.66 points higher at 31,537.35. The S&P 500 also reversed a 1.8% loss and ended the day 0.1% higher at 3,881.36.The Nasdaq Composite slipped 0.5% to 13,465.20 after dropping as much as 3.9% earlier.
Victor Nnadi is an Independent Economics Researcher and a Securities Trader.
