(Federalreserve.gov) The Federal Reserve chair Jerome Powell has reaffirmed commitment to monetary goals for maximum employment and price stability.
Powell pointed out, in a congressional hearing, that the Covid-19 vaccine rollout has led to the reopening of the economy.
The Fed chair said that real gross domestic product is on an upward trajectory with the increase in household spending and overall business investments.
Powell reported that the labor market conditions are improving, although the unemployment rate remained at 5.9% in June even with employers adding 1.7 million workers in April to June.
Inflation has increased boosted by the base effect and is likely to remain high in the coming months as per Powell’s report.
FOMC kept the federal fund rate at zero in June and maintained asset purchase rate to ensure monetary policies support the economy past the recovery phase.
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