In a relatively dovish speech, Fed Chair Jerome Powell said, “despite the surprising speed of recovery early on, we are still very far from a strong labor market whose benefits are broadly shared.” And, “even those grim statistics understate the decline in labor market conditions for the most economically vulnerable Americans.”

“Given the number of people who have lost their jobs and the likelihood that some will struggle to find work in the post-pandemic economy, achieving and sustaining maximum employment will require more than supportive monetary policy,” he added. “It will require a society-wide commitment, with contributions from across government and the private sector.”

Full speech here.

Cleveland Fed President Loretta Mester said yesterday monetary policy is “going to be accommodative for a very long time because the economy just needs it to get back on its feet.” Recovery is going to pick up momentum in the second half after vaccination. But until then, fiscal support on vaccine distribution and employment could help stabilize the economy. Also, “It’s going to take a while for the economy to get back to maximum employment,” she added.

Separately, Richmond Fed President Thomas Barkin said in a Financial Times interview that the economy still need support. “I still think there are a lot of people out of work who need a bridge to the other side, and I am supportive of what we can do to help them.” He expected some “short-term price volatility” but there are deflationary risks too. He’s keeping the focus on “medium-term” inflation expectations.