Fed Chairman Jerome Powell, in his speech on Tuesday, reiterated his belief that inflation is temporary. He pointed out that it is already on the decline, and attributed the recent surge to the reopening of the US economy.

When asked whether the situation in 1970 could happen again, Powell denied and said it is unlikely that such a scenario will occur this time.

He also made it clear that the central bank will be patient with upcoming economic data, as this is an unusual time.

But in terms of inflation measures, Powell stressed that the Fed prefers the PCE index because its data is updated monthly.

Most of the questions that Powell received were related to labor shortages and whether unemployment benefits could be blamed for that.

To this, Powell said the reasons were: the coronavirus, school closures and the time it takes to find a new job. He assured that more jobs will appear in the coming months.

As for the US dollar, it will remain as the reserve currency, and it is unlikely that anything will change in the near future.

Questions were also raised about the dumping of dollar in Russia and China, but Powell ignored the question and said it is not a topic that should be discussed at this time.