Jerome Powell held firm in the Federal Reserve’s approach to the economic recovery in his virtual Jackson Hole address. “The Committee remains steadfast in our oft-expressed commitment to support the economy for as long as is needed to achieve a full recovery,” Powell said.
While he said inflation at current levels is cause for concern, high readings are likely temporary and acting too quickly to change policy could be “harmful.”
Powell added that while the Fed will be closely watching incoming data to designate a pace for the tapering of asset purchases, which could begin as soon as this year. That decision, however, will not be a direct signal of an upcoming rate hike, Powell said.