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Jerome Powell has “never really seen” current supply chain issues

Jerome Powell says he has “never really seen” the current level of supply chain issues at a listening session on Friday, which could explain the Fed chair’s recent dovish stance.

His remarks come days after consensus was reached that labour markets have sufficiently recovered to allow for support to be withdrawn.

Powell has not made any additional comments on his monetary outlook, which he put forward a couple of days ago at a Fed meeting.

September’s meeting finished with the Fed alluding to its readiness to taper its asset purchasing, adding that an announcement could come when the committee meets next in November.

Investors could welcome tapering measures at this point as inflation threatens to spiral out of control.

Going back to supply chain issues, Nike’s share price is down by over 6% on Friday, as the sportswear brand cited a broken supply chain.

Nike said the supply issues, including container and worker shortages, caused around the world by the pandemic, could impact its production and delivery of goods up to next spring.

"We are not immune to the global supply chain headwinds that are challenging the [manufacturing] and movement of product around the world," Chief Financial Officer Matthew Friend said on an earnings call.

Those hoping for a pair of Nike trainers for Christmas could be out of luck.

Supply chain issues are truly a global phenomenon it would seem.

The UK is bracing for empty shelves over the winter period, which many steadfastly attribute to Brexit.

While away from the UK, there is a shortage of HGV drivers in New Zealand.

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