- Fed Chairman Powell Not Worried About Rising Inflation
- Britain Launches Negotiations on the Trans-Pacific Partnership Agreement
- Russia Prepares for Proposal to İncrease Oil Production
Fed Chairman Powell Not Worried About Rising Inflation
US Federal Reserve (Fed) Chairman Jerome Powell stated that Inflation in the US is on the rise. Still, he noted the Fed will return to its 2 percent target once supply imbalances are eliminated.
“Since we last met, the economy has shown sustained improvement,” Powell said in remarks he would deliver Tuesday to the House Select Subcommittee on the Coronavirus Crisis.
“Widespread vaccinations have joined unprecedented monetary and fiscal policy actions in providing strong support to the recovery. As a result, indicators of economic activity and employment have continued to strengthen, and real GDP this year appears to be on track to post its fastest rate of increase in decades,” he added. “Much of this rapid growth reflects the continued bounce back in activity from depressed levels.”
In his speech to the US Congress, Powell pointed to the rise in oil prices and the escalation in spending in the USA with the lifting of the pandemic restrictions, “Inflation has risen significantly in recent months. “As these temporary supply effects wear off, inflation is expected to return to our long-term target.”
Powell stated that the US economy, which was affected by the coronavirus epidemic, saw “continuous recovery,” and the increase in employment continued.
In his address to Congress, Powell did not elaborate on the current monetary policy or the possibility that the Fed may have to end its support for the economy more quickly due to rising prices.
“As the Fed, we will do everything we can to support the economy until recovery is achieved,” said Chairman Powell.
Britain Launches Negotiations on the Trans-Pacific Partnership Agreement
The UK has started formal negotiations to join the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP), including 11 countries.
Seeking to diversify its trade post-Brexit, the UK has started formal negotiations to be included in the 11-nation Trans-Pacific Trade Agreement.
International Trade Minister Liz Truss made a statement on the subject and said that joining the organization, including Canada, Japan, Mexico, and Australia, is the post-Brexit “reward.” “These parts of the world are the areas with the most opportunity for Britain,” Truss said. Our involvement in this agreement will support our farmers and producers to sell to the largest economies of today and the future.”
After the decline of trade with its biggest partner after leaving the European Union, the UK is developing new trade relations.
Besides membership in the CPTPP, it is also negotiating bilateral agreements with the UK, Australia, New Zealand, and the USA. Trade agreements have already been made with the seven countries included in the contract. The country’s Ministry of Commerce reported that participation in the CPTPP would facilitate financial and professional service providers’ access to new markets.
Russia Prepares For Proposal To Increase Oil Production
Russia is considering proposing an increase in oil production at the OPEC+ meeting next week, Bloomberg News reported.
Sources with knowledge on the subject stated that Russia expects the global oil production deficit to continue in the medium term, while the final decision for the meeting to be held on July 1 is still in the process of being formed.
The International Energy Agency warned OPEC+ countries at the beginning of June that they should increase their production capacities to meet the market demand well. On the other hand, Goldman Sachs expects a deficit of close to 3 million barrels per day due to the lack of production from Iran.
Saudi Arabian Energy Minister Abdulaziz bin Salman said he would like to see clear evidence that the recovery is strong before deciding to produce more.
Unlike its Saudi partner, Russia has typically been an advocate for production increases. Earlier this month, the nation’s key oil producers said OPEC+ needs to keep ramping up its output to satisfy additional global demand. Russia’s Deputy Prime Minister Alexander Novak is meeting the nation’s primary producers to discuss the market situation.