Comments from the Fed chair in his opening statement
- Goods spending has moderated following large gains
- Consumer spending on services remains low
- Path ahead remains highly uncertain
- Inflation remains below 2% on 12-months basis
- Cited progress on vaccine and mask wearing as positives
- Economy has proved more resilient than expected
- Monetary policy is playing a key role in supporting the recovery
- We continue to expect it will be appropriate to leave rates at currently levels until inflation on track to moderately exceed 2% for some time
- Repeats that QE will continue until 'substantial further progress' made
- Economy is a 'long way' from employment and inflation goals
- Repeats that it's likely to take 'some time' before substantial progress
- If progress or changes, we will adjust
He hit all the right dovish notes in the opening statement and the only thing remotely hawkish was some optimism about the vaccine, which is not a surprise.
