- Jerome Powell: “Economic recovery in the US is still unstable”
- ‘Bitcoin’ warning from US Treasury Secretary Yellen
- Export expectation of German industrial companies at the top of 2 years
Jerome Powell: “Economic Recovery in the US is Still Unstable”
Jerome Powell: “Economic Recovery in the US is Still Unstable”
US Federal Reserve (FED) President Jerome Powell said that the effects of the weakening in the country’s economy due to the pandemic continued to a large extent. Many economists say the economy will recover by the end of this year.
According to the news on the website of Voice of America, Powell told the Banking Commission of the Senate about the latest situation in the economy, “The economic recovery is still unstable and still far from completion. The road ahead is also very uncertain.”
Many economists, on the other hand, expect a leap forward in the recovery process in the summer, thanks to the low interest policy as well as the government’s financial aid and vaccination campaign.
Powell said he saw the potential for such progress, but millions of people in the country are still in financial difficulties, especially Americans who were unemployed during the pandemic.
“As with any economic activity, the pace of progress in employment has slowed,” said Powell. “Although there has been a significant improvement in employment since spring last year, millions of Americans are still unemployed,’’ he added.
Fed Chairman Jerome Powell signaled that even if economic activity was more normal and positive later this year, the US central bank had a lot of time to reduce the incentives made during the pandemic period.
Addressing the US Senate Banking Committee, Powell said, “The economy is far from our targets for employment and inflation, and it will likely take some time to make significant progress.” Powell also gave the message that he does not agree with the increasing concerns that a new and massive financial aid package will cause inflation, or an increase in demand due to the increase in the number of people vaccinated against Covid-19 in the US.
After Fed Chairman Jerome Powell’s statements at the US Congress that the Fed will continue to buy bonds, US indices went up slightly, while bond yields declined.
After Powell’s announcement that the Fed will continue its bond purchases and does not worry about inflation, Wall Street indexes completed the day with slight increases except for Nasdaq. While yield on US 10-year bonds declined sharply after Powell’s statements, transactions continued at 1.33 percent this morning.
Oil prices fell with the expectation that the American Petroleum Institute will announce that the crude oil stocks in the country have increased for the first time in 5 weeks. After the freezing cold in Texas, 80 percent of the drilling activities in this region have started to be provided again.
‘Bitcoin’ Warning from US Treasury Secretary Yellen
‘Bitcoin’ Warning from US Treasury Secretary Yellen
German business morale in February bounced back from a six-month low in January, in a more-than-expected upward trend, thanks to a brighter industrial outlook and well-stocked order books, the Ifo economic institute reported.
Ifo said its business climate index increased to 92.4 from an upwardly revised 90.3 in January, hitting its highest level since October and surpassing even the strongest forecast in a Reuters poll of analysts.
“The German economy is looking towards recovery again,” Ifo economist Klaus Wohlrabe told Reuters.
Ifo President Clemens Fuest said China’s good economic situation and the increase in US output are helping German exporters.
The Ifo Export Expectation Index in Germany increased by 3.2 points to 10.7 points in February due to the expectations that the economic recovery will be rapid in China and the USA, the most important trading partners of the country. China was Germany’s most important trading partner in 2020 for the fifth consecutive year, the Federal Statistical Office (Destatis) announced on Monday.
The Economic Research Institute (Ifo) published the results of the February export prospects survey for Germany.
Accordingly, the Industrial Export Expectation Index, which was 7.5 points in January this year in Germany, increased by 3.2 points in February to 10.7 points. Thus, the index reached its highest level since September 2018.
Ifo President Clemens Fuest, in his assessment of the survey in which 2,300 companies participated, stated that the sensitivity among German exporters has improved significantly.
“The good economic situation of China and the increase in US production are helping German exporters,” Fuest said.
Stating that the chemical industry and machinery and equipment manufacturers expect a significant increase in their exports, Fuest noted that automotive manufacturers expect more orders from abroad again after a three-month interval.
Chancellor Angela Merkel and state premiers have agreed to extend restrictions to curb the spread of the coronavirus until March 7. She told a party meeting that she wants a staggered plan to lift restrictions, according to two participants.
Export Expectation of German Industrial Companies at the Top of 2 Years
Export Expectation of German Industrial Companies at the Top of 2 Years
German business morale in February bounced back from a six-month low in January, in a more-than-expected upward trend, thanks to a brighter industrial outlook and well-stocked order books, the Ifo economic institute reported.
Ifo said its business climate index increased to 92.4 from an upwardly revised 90.3 in January, hitting its highest level since October and surpassing even the strongest forecast in a Reuters poll of analysts.
“The German economy is looking towards recovery again,” Ifo economist Klaus Wohlrabe told Reuters.
Ifo President Clemens Fuest said China’s good economic situation and the increase in US output are helping German exporters.
The Ifo Export Expectation Index in Germany increased by 3.2 points to 10.7 points in February due to the expectations that the economic recovery will be rapid in China and the USA, the most important trading partners of the country. China was Germany’s most important trading partner in 2020 for the fifth consecutive year, the Federal Statistical Office (Destatis) announced on Monday.
The Economic Research Institute (Ifo) published the results of the February export prospects survey for Germany.
Accordingly, the Industrial Export Expectation Index, which was 7.5 points in January this year in Germany, increased by 3.2 points in February to 10.7 points. Thus, the index reached its highest level since September 2018.
Ifo President Clemens Fuest, in his assessment of the survey in which 2,300 companies participated, stated that the sensitivity among German exporters has improved significantly.
“The good economic situation of China and the increase in US production are helping German exporters,” Fuest said.
Stating that the chemical industry and machinery and equipment manufacturers expect a significant increase in their exports, Fuest noted that automotive manufacturers expect more orders from abroad again after a three-month interval.
Chancellor Angela Merkel and state premiers have agreed to extend restrictions to curb the spread of the coronavirus until March 7. She told a party meeting that she wants a staggered plan to lift restrictions, according to two participants.
