July 28, 2021
Jerome H. Powell
July 28, 2021 FOMC Press Conference
- The chair said real GDP this year appears to be on track to post its fastest rate of increase in decades.
- The chair said the unemployment rate in June was 5.9 percent, which understates the shortfall in employment due to low labor force participation.
- The chair said the Fed has not reached substantial further progress on its goals and needs to see some strong job numbers before tapering asset purchases.
- The chair said the recent inflation overshoot is tied to a handful of categories like cars, airplane tickets, and hotels, and risks to inflation are probably to the upside in the near term.
- The chair announced the establishment of two standing repo facilities, one domestic and one for foreign and international monetary authorities, to serve as backstops in money markets.
From the opening statement
Press conference
CHAIR POWELL. Good afternoon. At the Federal Reserve, we are strongly committed to achieving the monetary policy goals that Congress has given us: maximum employment and price stability.
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 support the economy until the recovery is complete.
Progress in vaccinations and unprecedented fiscal policy actions are also providing strong support to the recovery. Indicators of economic activity and employment have continued to strengthen, and real GDP 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.