Powell speech: Forces driving inflation are clearly temporary

Eren Sengezer FXStreet

FOMC Chairman Jerome Powell is testifying before the Senate Banking, Housing, & Urban Affairs Committee on "the Semiannual Monetary Policy Report to the Congress."

Key quotes

"Fed is watching the evolution of the economy."

"There is still elevated unemployment and inflation is well above target."

"Fed is in active consideration of whether economy has achieved 'substantial further progress' to reduce asset purchases."

"Fed did not weaken capital requirements for the largest banks."

"Fed maintained high stringency of bank stress tests during the pandemic."

"A handful of things tied to reopening are driving higher inflation."

"Those forces driving inflation are clearly temporary."

"We don't see broad inflation going up in a lot of categories."

About Jerome Powell (via Federalreserve.gov)

Jerome H. Powell took office as Chairman of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term. Mr. Powell also serves as Chairman of the Federal Open Market Committee, the System's principal monetary policymaking body. Mr. Powell has served as a member of the Board of Governors since taking office on May 25, 2012, to fill an unexpired term. He was reappointed to the Board and sworn in on June 16, 2014, for a term ending January 31, 2028.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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