Powell Says Fed to Double Taper Pace in Inflation Pivot

The Federal Open Market Committee (FOMC) is focused on achieving maximum employment and price stability. Interest rates remain near zero, and asset purchase reductions are accelerated due to a strong labor market and high inflation. Economic growth is robust, but COVID-19 variants pose risks. Inflation is above target due to supply constraints, but is expected to decline. The federal funds rate is projected to rise gradually. Asset purchases will be reduced faster to better address economic outcomes. The Fed is committed to supporting the economy and preventing entrenched inflation.

What challenges are employers facing in the current labor market?

What is the expected trajectory of inflation according to the FOMC participants?

How does the Fed plan to address the risks of persistent inflation?