In the prepared remarks for the nomination hearing before Senate Banking Committee, Fed Chair Jerome Powell said, “today the economy is expanding at its fastest pace in many years, and the labor market is strong.”
After the initial shutdown and the subsequent reopening, “the economy has rapidly gained strength despite the ongoing pandemic, giving rise to persistent supply and demand imbalances and bottlenecks, and thus to elevated inflation.”
“We are strongly committed to achieving our statutory goals of maximum employment and price stability,” Powell said. “We will use our tools to support the economy and a strong labor market and to prevent higher inflation from becoming entrenched.”
