Fed's Powell: Fed fully committed to both legs of dual mandate
|In response to Senator Rick Scott's concerns about rising inflation and the Fed's bond buying program, FOMC Chairman Jerome Powell said that too-low inflation harms American families and businesses, as reported by Reuters.
Additional takeaways
"We do not seek inflation that substantially exceeds 2%, or above-2% inflation for a prolonged period."
"The Fed is fully committed to both legs of our dual mandate."
"Inflation to move a little higher this year, in part reflecting transitory factors as the economy strengthens."
"We do not anticipate high inflation but have tools to address 1970s-type pressures if they arise."
"Fed is buying bonds at a pace unrelated to magnitude of fiscal deficits."
"Low treasury yields attest to strong global demand for safe, liquid assets."
"US recovery looks to be strengthening."
"Unemployment rate underestimates shortfall in jobs with labour market participation below pre-pandemic levels."
"Rise in COVID-19 cases cause for concern, vaccinations offer hope for a return to more normal conditions later this year."
Market reaction
The US Dollar Index showed no immediate reaction to these comments and was last seen gaining 0.12% on a daily basis at 91.17.
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