Powell says inflation is still soft and the Fed is committed to current policy
KEY POINTS
- Fed Chairman Jerome Powell characterized inflation as “soft” for the most part and said the employment picture still needs help.
- The pandemic has “left a significant imprint on inflation” and it price pressures are not a threat now, he told the Senate Banking Committee. Inflation and employment remain well below the Federal Reserve’s goals, meaning easy monetary policy is likely to stay in place, central bank Chairman Jerome Powell said Tuesday.
Despite a sharp rise this year in bond yields that has accompanied heightened concern over inflation, Powell said price pressures remain mostly muted and the economic outlook is still “highly uncertain.”
“The 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,” the Fed chief said in prepared remarks for the Senate Banking Committee.
He added that the Fed is “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.”
https://www.cnbc.com/2021/02/23/powell-says-inflation-is-still-soft-and-the-fed-is-committed-to-current-policy-stance.html?&qsearchterm=powell
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