Federal Reserve Chairman Jerome Powell will submit a semi-annual report on the state of the economy to Congress at hearings on Wednesday and Thursday.
Powell will provide the Fed’s views on employment, inflation and interest rates.
Speaking of economic conditions on Friday, the central bank said: “Progress in vaccination has led to the reopening of the economy and strong economic growth.”
Material shortages make it harder for companies and employees to rebound after the pandemic. For example, while preparing for the next supply contraction, the automotive industry has dealt with the chronic shortage of global chips.
Since the beginning of the pandemic, interest rates have approached zero. Some experts believe that interest rates will remain at that level until the inflation rate returns to 2% or “employment maximization”.
Powell has always used the pre-pandemic employment rate as a guide for the country’s recovery, but Friday’s report may indicate that the country may not be able to return to the same labor force level as in 2019.
US Federal Reserve Chairman Jerome Powell said that the US economy will see a turnaround and economic growth will provide more job opportunities.
Powell had a conversation with Scott Paley on Wednesday about the 60-minute report to be aired tonight. https://t.co/HRVwQ1uoBK pic.twitter.com/5An4apGvEW
— 60 minutes (@60 minutes) April 11, 2021
