Fed's Powell: Strongly committed to inflation that averages 2% over time

In an interview with National Public Radio (NPR), FOMC Chairman Jerome Powell noted that the economic outlook improved recently with the vaccine rollout and additional fiscal support, as reported by Reuters.

Key takeaways

"As the economy recovers and make substantial further progress toward our goals we will roll back bond purchases."

"Process will take place with the greatest transparency."

"We are strongly committed to inflation that averages 2% over time."

"Level of debt today is not unsustainable, no question of US being able to service its debt right now."

"Climate change is an important issue we will be dealing with for a long time with significant economic implications."

"Fed does have a role to play in this, a narrow but important set of responsibilities around bank regulation."

"All of the large and medium-sized banks are already asking themselves these questions."

"Not our job to tell banks which legal businesses to lend to or not."

"Asked about diversity inside the fed, says we're not at all satisfied with results of diversity efforts."

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen posting small daily gains at 92.60.