Jerome Powell testified before House Covid Panel; Comments on inflation and economic recovery

Jerome Powell, Chairman, Federal Reserve testified before the House Covid Panel. He said that the economic recovery was on the right track, growth is gradual and promising. He gave an account of the U.S. Treasury yield- a ten-year yield was found to be less than 1.50% as of today. Inflation, according to him, was inevitably increased but will drop down as the economy recovers.

He said that- “Widespread vaccinations have joined unprecedented monetary and fiscal policy actions in providing strong support to the recovery. Indicators of economic activity and employment have continued to strengthen, and real GDP this year appears to be on track to post its fastest rate of increase in decades Much of this rapid growth reflects the continued bounce back in activity from depressed levels.”