By Yasin Ebrahim
Investing.com - Federal Reserve Chairman Jerome Powell repeated Tuesday the Federal Reserve's view that any inflation rise this year will likely be a "one-off," but stressed the central bank has the tools to ensure inflation is kept well anchored to its 2% target.
In prepared remarks, Powell acknowledge that the recovery has progressed more quickly than expected, but stress that the Fed will "continue to provide the economy the support that it needs for as long as it takes ... as sectors of the economy most adversely affected by the resurgence of the virus, and by greater social distancing, remain weak."
In joint testimony alongside Powell, U.S. Treasury Secretary Janet Yellen, meanwhile, was quizzed on impact of the administration's plans to raise taxes on jobs and workers wages. Yellen said the impact of corporate tax hike on impact on prices, consumers are "very unclear" from existing studies, but added the funds raised from taxes would help fund the government's spending plan including an infrastructure package and the creation of good jobs in the economy.
The S&P 500 was down 0.2%, while the U.S. 10-year yield was at 1.64%.