Fed Powell sends letter to Sen. Rick Scott

Fed Powell has sent a letter to Sen. Rick Scott (Fla R)

  • Too low-inflation harms American families and businesses.
  • Fed is committed to both legs of dual mandate
  • we do not anticipate high inflation but have tools to address 1970s type pressures if they arise
  • Fed is buying bonds at a pace unrelated to magnitude of fiscal deficits
  • low treasury yields attest to strong global demand for safe liquid assets
  • recovery is strengthening
  • unemployment rate underestimates shortfall in jobs
  • rising Covid cases is a cause for concern
  • vaccinations offer hope for more normal conditions

The Powell letter is in response to March 24 letter from Sen. Rick Scott to the Fed Chair. The reply was given to Reuters news.