The US financial minister, Janet Yellen told that the infrastructure budget, employment, and household which are planned during the Biden’s government will not cause the inflation jump. 

It is because everything is done gradually in a decade ahead. This new statement from Yellen dampen the concern of the market participants. Before, they speculated that those plans will increase the inflation. 

That spending plan will be evenly distributed for about eight up to ten years. She believes that inflation can become an issue. However, The Fed will have a solution if that problem really appears. 

Biden’s Investment Plan Is Important 

The investment plan made by Biden will become a historical action which is really needed to make the economic is more productive. People must know that the spending plan covers many aspects. 

These are like the education, infrastructure, the employment market recovery, up to a program to help the American families to come out from the pandemic. The plan has a huge budget. 

Totally, that stimulus plan needs $6 trillion and most of them will be taken from the progressive tax increase program. It is especially for the richest corporates in the United States. 

The amount of those corporates are less than one percent from the population. Separately, the National Senate Leader there also says the same thing where there isn’t any evidences for uncontrollable inflation. 

Inflation Jump Is Just Temporary

A lot of parties in America hope that the employment market there will be recovered and developed. However, for now they just think that the inflation jump will be not permanent. 

Basically, it is a condition that they expect after the big recession because of the pandemic. The massive shopping plan created by Biden is not fully received a support from democrat party. 

Some of the members of that party stated that the tax increase can make the economic growth is slower. That is why; there is still uncertain whether that Biden budget proposal will be agreed or not. 

That proposal plan must pass the agreement of the congress until it is legalized at last. The voting progress about this Biden plan has a chance that it will be highlighted by the investors in the future. 

Meanwhile, The Dollar Index Is Consolidated 

The index of US dollar was consolidated to the level of 91.20 two days ago. Before, that currency has been jumping high last week. Some major currencies tried to outperform the greenback again. 

Meanwhile, the market participants wait for the range of economic cats release in America and the policies meeting held by other central banks. The index of USD was slipped for 2 percent. 

That happened during the April month. The cause is the global recovery prospect that pushes the decline of market desire to hold the US dollar. However, greenback starts to grow again. 

It is especially after the USA GDP release on Thursday and the American consumers’trust sentiments on Friday. The analysts assessed that those increase are just temporary. 

The New Development in The Market

Some new developments in the market have a chance to become the market catalysts. It is for sure that the thing like this will be highlighted this week. One of them is a statement from the Nothing Korea. 

That country has started a warning to America after Biden said that the North Korea is a security threat. Furthermore, India is now applying the tight lockdown again after the COVID-19 victims there are so massive. 

The Markit Economics and ISM is ready to release the Purchasing Manager’s Index data about the leader countries in the world. Those are like the United States and EuroZone. It is started from today and some days ahead.