Labor market conditions are improving, but turbulent, and the pandemic continues to threaten not only health and life, but also economic activity. The result has been elevated inflation in durable goods, a sector that has experienced an annual inflation rate well below zero over the past quarter century. Booming demand for goods and the strength and speed of the reopening have led to shortages and bottlenecks, leaving the COVID constraint supply side unable to keep up. In a reversal of typical patterns in a downturn, aggregate personal income rose rather than fell, and households massively shifted their spending from services to manufactured goods. Strong policy support has fueled a vigorous, but uneven recovery, one that is in many respects, historically anomalous.
/arc-anglerfish-arc2-prod-expressandstar-mna.s3.amazonaws.com/public/3F7ULNGEMREVBFNNIKIT6PUK44.jpg "powell speech")
We should also keep in our thoughts those who have lost their lives from COVID, as well as their loved ones. And a good place to begin is by thanking those on the frontline fighting the pandemic, the essential workers who kept the economy going, those who have cared for others in need, and those in medical research, business and government, who came together to discover, produce, and widely distributed effective vaccines in record time. The path of recovery has been a difficult one. This shock led to an immediate and unprecedented decline as large parts of the economy were shuttered to contain the spread of the disease.
Powell speech full#
17 months have passed since the US economy faced the full force of the COVID-19 pandemic.
Chairman Powell, I want to thank you for your flexibility in these circumstances. Now it’s my distinct honor to welcome Federal Reserve chairman, Jay Powell. As always, the full agenda and each of the papers presented will be posted at our public website,, and a transcript of the symposium will be made available after the event. Following that, the remainder of the program titled: Macroeconomic Policy in an Uneven Economy will continue for invited guests. Virtually we will open the program today with our first speaker Fed chairman, Jay Powell, whose remarks will be broadcast to the public. I regret the inconvenience of this last minute pivot to a virtual format, and want to express my thanks to our partners at the Jackson Lake Lodge and many others in the Jackson Hole area for working with us for months to make preparations and accommodations. And that seemed a reasonable plan before local health conditions changed. After hosting a virtual conference last year, it was our hope that we could convene in person this week. In late August each year, since 1982, the Kansas City Fed has been honored to welcome central bankers, policymakers, academics and others to Jackson Hole Wyoming for our Economic Policy Symposium. Watch the full video of Powell's press conference below, followed by CNBC's real-time updates and analysis.Hello, I’m Esther George, president of the Federal Reserve Bank of Kansas City. "I now suggest that we retire that term, which has served its purpose."
"You can think of this meeting that we had as the 'talking about talking about' meeting, if you'd like," he said. Powell said the central bank is monitoring economic data and hasn't made any decisions on ending its bond purchases. Investors have also been wondering when the Federal Reserve will begin talking about tapering – or cutting back its bond-buying program, which it's had in place to help prop up the economy through the pandemic. Though stocks slid amid these findings, Fed Chair Jerome Powell warned against reading too much into the dot-plot, saying the projections need to be taken with a " big grain of salt." In turn, the market curtailed its losses. While the Federal Open Market Committee kept its benchmark interest rate close to zero, central bank officials signaled on their so-called "dot-plot" that there could be two rate hikes in 2023. The Federal Reserve concluded its two-day meeting on Wednesday with higher expectations for inflation in 2021, along with an earlier timeframe for interest rate hikes.
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