U.S. Economy Is Rebounding, Powell Says

Today, the Federal Open Market Committee kept interest rates near zero and maintained our asset purchases. These measures, along with our strong guidance on interest rates and on our balance sheet, will ensure that monetary policy will continue to deliver powerful support to the economy until the recovery is complete. Widespread vaccinations, along with unprecedented fiscal policy actions, are also providing strong support to the recovery. Indicators of economic activity and employment have continued to strengthen, and real G.D.P. this year appears to be on track to post its fastest rate of increase in decades. Much of this rapid growth reflects the continued bounceback in activity from depressed levels. Household spending is rising at a rapid pace, boosted by the ongoing reopening of the economy, fiscal support and accommodative financial conditions. The housing sector is strong and business investment is increasing at a solid pace. It’s great to see the progress, but again, I would not declare victory yet. I would say it is so great to see the reopening of the economy, though, and to see people out living their lives again. You know, who doesn’t want to see that? But you can think of this meeting that we had as the talking about talking about meeting, if you like. And I now suggest that we retire that term, which which has served its purpose well, I think. So, committee participants were of the view that since we adopted that guidance in December, the economy has clearly made progress, although we are still a ways from our goal of substantial further progress.

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