"The recent increase in Covid-19 cases and the emergence of the Omicron variant pose downside risks to jobs and economic activity and increase uncertainty over inflation," Jerome says Powell Tuesday morning before the Senate Banking Committee, and which was released on Monday.

Indeed, "greater concerns about the virus could reduce people's willingness to work in person, which could slow progress in the job market and intensify supply chain disruptions," he said. precise.

The new Omicron variant of Covid-19, which has prompted many countries to take travel restriction measures, is raising fears for the global economic recovery.

The Fed chairman, whom Joe Biden has just reappointed for a second term, also indicated that "it now appears that the factors pushing inflation up will largely persist next year".

However, he stressed that "most forecasters, including at the Fed, continue to expect a significant drop in inflation over the next year, as supply and supply imbalances. demand will subside ".

Inflation in the United States is at its highest for 31 years, and accelerated in October to 5% year on year, according to the PCE index of the Commerce Department.

Jerome Powell assured, last Monday during his speech at the White House after the announcement of his appointment, that the Fed would act so that inflation does not "take root".

Joe Biden received heavyweights from distribution in the United States on Monday, such as the giant Walmart.

They assured that the situation was improving on the supply problems noted since the summer in the United States.

This hearing of Jerome Powell is not linked to his appointment, but is part of the follow-up to the recovery plans.

He will be heard jointly with Treasury Secretary Janet Yellen on Tuesday before the Senate Banking Committee and then Wednesday before that of the House of Representatives' financial services.

"Eviscerate the recovery"

Ms Yellen, whose speech was also released on Monday, stressed that "the progress of our economic recovery cannot be separated from our progress in beating the pandemic, and I know we are listening to news about the Omicron variant." .

She also pointed to another risk: that of the debt ceiling, which Congress will have to raise or suspend in the coming weeks, to avoid a default by the world's largest economy.

"I cannot stress enough the importance for Congress to resolve this problem. America must pay its bills on time and in full," said Minister of Economy and Finance Joe Biden.

"If we don't, we will gut our current recovery," she warned.

The debt ceiling could be reached in mid-December.

The country could then no longer borrow to finance its operations.

In October, Congress approved a text allowing the country's debt limit to be temporarily raised by 480 billion dollars, and thus honor its payments until the beginning of December.

The measure had been adopted with the sole support of elected Democrats, the Republicans being fiercely opposed to it.

© 2021 AFP