In the prepared remarks for Tuesday’s testimony, Fed chair Jerome Powell said the economy has shown “sustained improvement” with real GDP on track to posts its “fastest rate of increase in decades”. Labor market have “continued to improve”, but the pace has been “uneven”. Unemployment rate remained “elevated” at 5.8%. But job gains should “pick up in coming months” as vaccination rise. Powell also reiterated that as the “transitory supply effects abate, inflation is expected to drop back toward our longer-run goal”.
Separately, New York Fed President John Williams said the economy is “improving at a rapid rate”, and the “medium term outlook is very good”. However, “data and conditions have not progressed enough for the FOMC to shift its monetary policy stance of strong support for the economic recovery.”