Fed's Powell: Inflation has picked up noticeably, job gains should pick up in months ahead
Fed Chair Powell prepared testimony, he'll appear Tuesday US time to deliver his speech.
- US. economy has shown sustained improvement since Sept 2020
- real GDP on track to post fastest growth in decades
- sectors affected by pandemic remain weak, but have shown improvement
- household spending rising at a rapid pace
- housing sector strong, business investment increasing at a solid pace
- labor market conditions have continued to improve, the pace is uneven
- 5.8% unemployment rate understates employment shortfall
- job gains should pick up in coming months
- inflation has increased notably in recent months
- as transitory supply effects abate, inflation expected to drop back toward 2%
- pandemic continues to pose risks to the outlook
- vaccinations will likely continue to reduce effects of public health crisis on economy, but pace has slowed and new virus strains remain a risk
- fed will do everything we can to support the economy for as long as it takes to complete recovery
Powell is testifying before Congress, at the Select Subcommittee on Coronavirus Crisis, U.S. House of Representatives on Tuesday. The above is from the pre-released prepared testimony.
I don't see much at all in the above main points that is very different. Perhaps Powell will have something more impactful to say during the Q&A. Stay tuned (Q&A will be posted separately after his speech tomorrow).