Chairman of the United States Federal Reserve, Jerome Powell, testified on Tuesday before the Senate, telling the Senate\u2019s Banking Committee that the economy\u2019s recovery is still uneven and far from complete.<\/p>\n\n\n\n
Powell vowed to maintain the current monetary policy until the inflation target is achieved and full employment is reached.<\/p>\n\n\n\n
\u201cAt the Federal Reserve, we are strongly committed to achieving the monetary policy goals that Congress has given us, maximum employment and price stability.\u201d<\/p><\/blockquote>\n\n\n\n
<\/p>\n\n\n\n
\u201cThe economy is a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved.\u201d<\/p><\/blockquote>\n\n\n\n
<\/p>\n\n\n\n
The Fed Chair noted that the central bank has taken \u201cforceful actions to provide support and stability, to ensure that the recovery will be as strong as possible, and to limit lasting damage to households, businesses, and communities.\u201d<\/p>\n\n\n\n
\u201cThe path of the economy continues to depend significantly on the course of the virus and the measures undertaken to control its spread,\u201d he added.<\/p>\n\n\n\n
\u201cOngoing vaccinations offer hope for a return to more normal conditions later this year.\u201d<\/p><\/blockquote>\n\n\n\n
<\/p>\n\n\n\n
In addition, Powell said that household spending on services remains low, but household spending on goods increased in January after moderating late last year, while the pace of improvement in the labor market has slowed.<\/p>\n\n\n\n
\u201cInflation remains below our 2% longer-run objective.\u201d<\/p><\/blockquote>\n\n\n\n
<\/p>\n\n\n\n
Furthermore, Powell pointed to the public review conducted last year of the Fed\u2019s monetary policy strategy, tools, and communication practices.<\/p>\n\n\n\n
He said that the Fed plans to keep the low interest rates until the labor market conditions have reached levels consistent with the maximum employment target and inflation has risen to 2% and is on track to moderately exceed this target for some time to achieve sustainability.<\/p>\n\n\n\n
\u201cWe will continue to increase our holdings of Treasury securities and agency mortgage-backed securities at least at their current pace until substantial further progress has been made toward our goals.\u201d<\/p><\/blockquote>\n\n\n\n
<\/p>\n\n\n\n
These policies have \u201cmaterially eased financial conditions and are providing substantial support to the economy,\u201d Powell noted.<\/p>\n\n\n\n
\u201cWe are committed to using our full range of tools to support the economy and to help ensure that the recovery from this difficult period will be as robust as possible,\u201d he concluded.<\/p>\n","protected":false},"excerpt":{"rendered":"
Chairman of the United States Federal Reserve, Jerome Powell, testified on Tuesday before the Senate, telling the Senate\u2019s Banking Committee that the economy\u2019s recovery is still uneven and far from complete. Powell vowed to maintain the current monetary policy until the inflation target is achieved and full employment is reached. \u201cAt the Federal Reserve, we …<\/p>\n","protected":false},"author":10,"featured_media":32057,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49],"tags":[7272,6867,6858],"class_list":["post-41934","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","tag-congress","tag-federal-reserve","tag-us-economy"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/41934","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=41934"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/41934\/revisions"}],"predecessor-version":[{"id":41935,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/41934\/revisions\/41935"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/32057"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=41934"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=41934"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=41934"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}