Powell: “Earlier for phasing out”

Powell: “Tapering için daha erken”

Fed Chairman Powell said they are still a long way from the conditions he said must be met in order for bond purchases to start tapering off.

Powell has already distributed his presentation to the press, which he will make today at the House Financial Services Committee.

In the presentation he distributed to the press, Powell also emphasized that inflation will remain high for a few months, but that they continue to believe that inflation will moderate once the economy reopens.

“Inflation has risen significantly and is likely to remain high in the coming months before it slows down,” reiterated Powell his view that the rise in inflation is related to the reopening of the economy and that the increase is temporary.

Emphasizing that there is still a “long way” before the job market to repair the 7.5 million losses suffered during the pandemic, Powell also noted that the labor force participation rate is still suppressed.

Assessing that “the economy is still far from meeting the standards set for reducing bond purchases,” Powell emphasized that Fed officials expect progress toward these standards to continue and will continue to discuss reducing bond purchases.

Powell also repeated that when the Fed decides to cut bond purchases, it will inform the markets in advance.

Forex

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