Powell: Middle of next year may be light at the end of the tunnel

Comments from the Fed Chair in Day 2 of testimony

  • Economy could be healthy in H2 2021
  • Near term looks challenging through the winter
  • Clearly in much better place for liquidity
All this begs the question: What about that pledge to keep rates zeroed until 2024? The economy has far outperformed Fed forecasts (to be fair they’re not alone) and what happens if it continues to outperform. How big is Powell willing to inflate the bubble to maintain his word?