Fed's Powell Says Reaching 'Substantial Progress' a Ways Off

The video discusses the Federal Reserve's policy goals of maximum employment and price stability, reviewing the economic situation in 2021. It highlights strong economic growth due to vaccinations and fiscal policies, but notes supply constraints in industries like motor vehicles. The labor market is improving, with high job openings, but unemployment remains elevated. Inflation has risen, influenced by base effects and supply bottlenecks, but is expected to moderate. The FOMC aims for inflation expectations anchored at 2%. Monetary policy remains supportive, with low federal funds rates and asset purchases, to aid economic recovery.

What are the expected trends in inflation according to the report?

How does the Federal Reserve plan to achieve its inflation objectives?

What measures are being taken to support the economy during the recovery?