In the remarks prepared for a Congressional testimony on Tuesday, Fed Chair Jerome Powell said, “indicators of economic activity and employment have turned up recently.” As with overall economic activity, “conditions in the labor market have recently improved”. The recovery has “progressed more quickly” than generally expected and looks to “strengthening”.
Nevertheless, “the sectors of the economy most adversely affected by the resurgence of the virus, and by greater social distancing, remain weak,” he added. “And the unemployment rate—still elevated at 6.2 percent—underestimates the shortfall, particularly as labor market participation remains notably below pre-pandemic levels.”
“We are committed to using our full range of tools to support the economy and to help assure that the recovery from this difficult period will be as robust as possible on behalf of communities, families, and businesses across the country,” Powell reiterated.
