Jerome Powell, chairman of the US Federal Reserve System (FRS, acts as the central bank), said on Wednesday at a hearing in one of the committees of the US Senate that he does not consider Russia’s actions in Ukraine to be the main cause of inflation in the US.
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As Republican Senator Bill Hagerty (R-Tennessee) noted during the hearing, inflation in the US has risen 1.6% since February to 8.6%. “Given how much inflation has risen over the past 18 months, can you say that the war in Ukraine is the main driver of inflation in America?” asked the legislator. “No, inflation was high before, definitely before the war started in Ukraine,” Powell replied.
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“I’m glad to hear that. The [U.S. President Joe] Biden administration appears to be clearing the blame and most recently, just last Sunday, spread disinformation that [President Vladimir] Putin’s invasion of Ukraine “is a major the driving force behind inflation. “I’m glad you agree with me that this is not the case,” Hagerty said.
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Later, Democrat Kirsten Sinema (from Arizona) asked to what extent, according to the head of the FRS, the situation in Ukraine influenced the growth of inflation in the United States.
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“I would say that the rise in commodity prices is clearly related to the war in Ukraine. This component of inflation, of course, would be much lower if it were not for the war in Ukraine. Our tools are working on demand, for our tools, the work here is “to make demand more moderate, more balanced with supply. I don’t think we have an answer to the high oil prices associated with the world oil situation,” Powell replied.
