Summary
- Federal Reserve Chair Jerome Powell said the economic impact of rising oil prices is relatively limited in the U.S.
- He said the oil shock would have a much greater effect on the U.S. economy if it persists for a prolonged period.
- Markets are focused on the possibility that a prolonged rise in oil prices could weigh on inflation and consumer spending.
Forecast Trend Report by Period
Federal Reserve Chair Jerome Powell said the economic impact of rising oil prices is relatively limited in the U.S., though he cautioned the burden could grow if the shock persists.
Powell said on April 29 that the oil shock has a relatively smaller impact on the U.S. than on Europe and Asia, according to Walter Bloomberg.
He attributed that to differences in energy structure, saying the U.S. economy has a greater capacity to absorb the shock.
If the situation lasts longer, the impact will be felt much more strongly, he said.
Powell also said he is well aware that Americans are feeling the rise in gasoline prices.
Markets are focused on the possibility that a prolonged rise in oil prices could weigh on inflation and consumer spending, even if the short-term impact remains limited. Energy prices are seen as a key variable going forward.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
