Powell comments in the Q&A:
- Decision for how much to spend is a question for congress
- Be careful with relying too much on potential output and output gap estimates
- We monitor a broad range of inflation indicators
- Increase in inflation readings in next few months "isn't going to mean very much"
- We could also see a burst of spending that also causes temporary price increase but my expectation is that will be neither large nor sustained
- We won't even think about removing stimulus until we see that we're "really through the pandemic, because there's so much uncertainty"
- We need to manage downside risks
- We will gradually return -- not any time soon -- to a place where size of balance sheet that is set by public's demand for liabilities
Stocks are back in the green. Mission accomplished. There's not even a hint of dovishness anywhere here and it's not coming any time soon.
