Powell: Supply side constraints are what's really holding back the economy right now

Powell at the ECB forum

• US fiscal policy more-than fully supported lost incomes
• Because of bottlenecks, this is an unusual situation
• Estimates of Q3 GDP have come down, though still at strong levels
• We expect inflation to moderate as bottlenecks ease
• Financial market pricing is well-aligned with transitory inflation
• If inflation lasts long enough, we monitor if it could push up expectations. That would be a serious concern
• There is a sense of urgency in wanting to push ahead of central bank digital currency, but we won't rush it