Federal Reserve Chairman Jerome Powell said that although the new crown mutant strain omicron still poses a risk, officials should consider speeding up and shrinking support measures to deal with the impact of the epidemic. At the same time, he no longer uses the term "temporary" to describe the high level. Inflation situation. Powell gave a testimony before the Senate Banking Committee on Tuesday. Democratic and Republican lawmakers both expressed concern about price increases. This remark is regarded as a turning eagle by the financial market, and it may cause interest rate hike next year to come sooner than expected.

The U.S. Congressional Budget Office (CBO) on Tuesday responded to Treasury Secretary Janet Yellen’s warning that if Congress does not raise the debt ceiling, the federal government may run out of funds after mid-December. The Congressional Budget Office also noted that the Treasury Department plans to transfer $118 billion to the Highway Trust Fund on December 15-a measure taken after the Biden Infrastructure Act was passed earlier this month.

U.S. consumer confidence fell to a nine-month low in November, as the accelerating rise in inflation and the increase in new crown cases have hit Americans’ perceptions of the economy. Data released on Tuesday by the World Large Corporations Research Council showed that the consumer confidence index fell to 109.5 in November from 111.6 after it was revised down in October. Economists surveyed by Bloomberg expected 110.9.

The Eurozone inflation rate has soared to the highest level since the advent of a single currency, and has exceeded all expectations, making the European Central Bank face greater challenges when it holds an important meeting next month to discuss the future of monetary policy stimulus measures. The Eurozone Consumer Price Index (CPI) climbed 4.9% year-on-year in November, exceeding the expectations of all 40 economists surveyed by Bloomberg, with a median expected value of 4.5%. Excluding volatile ingredients such as food and energy, the core CPI also set a record. After the data was released, the euro and the bond market basically did not fluctuate much.

German Chancellor-designate Olaf Schultz said that if the inflation rate does not fall from the current high, the government will need to take measures. In an interview with Bild TV on Tuesday, Schultz said that rising inflation is related to the government's expenditures in response to the epidemic and soaring energy prices, which is unacceptable in the longer term. He mentioned that analysts predict that price increases will ease.

An Italian minister warned of possible power outages across Europe, and the country’s Prime Minister Mario Draghi also reiterated that the government is prepared to deal with the impact of rising energy prices on consumers. Italian Minister of Economic Development Giancarlo Giorgetti said in Rome on Tuesday that given the current energy supply system, the possibility of power outages in Europe cannot be ruled out. "The important thing is to eliminate the impact of increased energy spending on households and businesses in the fairest way possible," he said.

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