Comments from Powell
- Current forecast is 4.2%
Private forecasts have been rapidly rising given strong January data on stimulus (despite the pandemic surge in Jan).
- Some parts of the commercial real estate market are under pressure, it's not clear if that's temporary or lasting
- Watching commercial real estate very closely
- Overall response to climate change has to come from elected officials
- Repeats that Fed is in favor of standardized climate disclosures
- Does not have an opinion on asset price bubbles
- We expect 'enthusiastic spending' to boost inflation but it won't be particularly large or persistent
- Inflation risks are to the downside
There have been no signs whatsoever in this testimony that anything has changed or that Powell is any less dovish.
