Jerome Powell, Chairman of the Federal Reserve, said today, Tuesday, that the US economic recovery is still “uneven and far from complete” and that “some time” will pass before the Fed considers changing the policies it adopted to help the country return to full employment.
In comments before the Senate Banking Committee at a hearing on the state of the economy, Powell added: The US central bank’s cuts to interest rates and its monthly government bond purchases of $ 120 billion “tangibly ease the severity of financial conditions and provide significant support to the economy.”
“The economy is very far from our targets in terms of employment and inflation, and it will likely take some time to achieve greater progress,” he said.
Powell added: At a time when the health crisis is improving in the country, and while «the vaccines (anti-Coronavirus) being distributed provide hope for a return to more normal conditions later this year, the path of the economy still depends greatly on the course of the virus. And the measures taken to control its spread.
Powell’s appearance in Congress coincides with an important juncture for the US economy, which is still suffering from the pandemic, but he may be preparing to launch later this year if the desired progress of the vaccination program is achieved.
The hearing in the Senate Banking Committee is the first appearance of Powell in Congress, since the Democrats won the White House and took control of both houses of Congress.
Powell said: The country’s economy may grow within 6% this year, while the recovery from the “Covid 19” pandemic is gaining momentum with the progress in the distribution of anti-disease vaccines.
When asked during his appearance before the Senate Banking Committee whether the gross domestic product might grow by up to 6%, as many economists now expect, Powell said, “It could be in that range.”
He added that gross domestic product may reach its pre-pandemic level at some time in the first half of this year, but he declined to give a specific date.
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