- Powell at the meeting reiterated his dovish stance, the Fed said that the jobs market will continue to drive a deep and comprehensive recovery, not only because of fears of soaring inflation but an immediate rate hike, which will do not feel that the employment rate is too high. rate hikes, but will patiently wait for evidence of actual inflation or other imbalances.
- Some members asked if the Fed would accept a 5% inflation rate, Powell rejected this figure. Powell acknowledged that the impact of the economic restart on inflation was larger than expected, but said that inflation is unlikely to happen like in the 1970s. The Fed is fully prepared to use its tools. to keep the inflation rate at around 2%. He still expects inflation to cool down.
- Powell said at the hearing that the Fed will focus on a range of labor market statistics, including the situation of different races and other groups, rather than just looking at the headlines. on the unemployment rate.
- Powell said that the US labor market is coming out of a difficult situation, demand for workers is strong, labor supply and employment conditions are expected to be good this year and a series of strong jobs data is expected. ant will be published soon. He said that factors affecting labor supply should be reduced, and autumn could see a strong growth in job openings. However, there is still a long way to go before jobs are restored. Temporary factors are affecting employment and the extension of unemployment benefits could be one of the factors.
- During Powell's hearing, US stocks surged and the three major US stock indexes closed for the second consecutive day. Yields on 10-year US Treasuries fell and the dollar index fell further.
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