Fed's Powell Says Progress Made Toward Taper Goal

The transcript discusses the Federal Reserve's monetary policy goals of maximum employment and price stability. It highlights the current economic recovery, driven by vaccinations and fiscal policy, with strong GDP growth and improving labor markets. However, challenges remain, such as supply constraints and uneven job recovery. Inflation is elevated due to supply bottlenecks but is expected to moderate. The Fed's new policy framework aims to anchor inflation expectations and support economic recovery. Continued vaccination progress is crucial for reducing economic risks. The Fed maintains accommodative policies, including asset purchases and repo facilities, to ensure financial stability.

How has inflation changed in recent months, and what are the expectations for the future?

What is the Fed's approach to maintaining an accommodative stance of monetary policy?

What are the expected outcomes of the Fed's asset purchases?