Fed’s Powell: Bond buying will continue the current pace

Fed’s Powell testifies before House Committee on Financial Services

Fed's Powell testifies
  • Bond buying will continue our current pace until see the actual data moving closer to inflation, employment goals
  • This will be the year in which the Fed engages with public on digital dollar
  • Communicate as far in advance as possible on progress
  • could will need legislative authority for for digital dollar
  • there is a lot of slack in the labor market
  • there is a long way to go to maximum employment
  • Fed is doing outreach research, consultation on climate risk to financial institutions he is confident that can reach 2% inflation and moderately exceeded
  • we want to see inflation expectations anchored at 2% not below
  • we believe we can do it, we will do it, it may take more than 3 years
US stocks have scene the S&P index moved back toward unchanged and marginally positive. The Dow industrial average has also moved back into the black.. Disney shares have moved above $200 for the 1st time.
The NASDAQ index still lags with a decline of -0.69% at 13372.24. But that is still off its lows of 13286.59.
More Powell highlights:
  • capital big banks has risen, they can keep blending
  • situation very different to global financial crisis
  • need a strong recovery, continued support from monetary policy
  • weakness in the economy now is unusually concentrated in sectors that depend on close contact
  • single best growth – creating measure is ending pandemic: need vaccination, mask wiring