- Fed's Chairman Powell: We will be carefully assessing incoming data and the evolving risks
Market news
27 August 2021
Fed's Chairman Powell: We will be carefully assessing incoming data and the evolving risks
- At July meeting, I thought it could be appropriate to start taper this year. Since then there has been more progress on employment but also the further spread of the delta variant
- Outlook for labor market has brightened considerably in recent months
- Substantial further progress test has been met for inflation
- We have much ground to cover to reach maximum employment
- Time will tell whether we have reached 2% inflation on a sustainable basis
- Incoming data should provide more evidence that supply-demand imbalnaces are improving and more evidence of continued moderation in inflation
- If sustained higher inflation were to become a serious concern, Fed would certainly respond
- Inflation at these levels is a cause for concern but elevated inflation readings likely to prove transitory
- Little reason to think underlying disinflationary factors have suddenly reversed; they're likely to continue to weigh on inflation
- For now, I believe that policy is well positioned; as always, we are prepared to adjust policy as appropriate to achieve our goals
- Timing and pace of coming reduction in asset purchases will not be intended to carry a direct signal regarding timing of interest rate liftoff
- Even after our asset purchases end, our elevated holdings of longer-term securities will continue to support accommodative financial conditions
Market Focus
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimerOpen Demo Account & Personal Page