Federal Reserve Chairman Jerome Powell insists our country's economic recovery is still on track.
Powell remaining optimistic this week amid a nationwide rise in COVID-19 cases and concern about inflation.
“Essentially, all of the overshoot can be tied to a handful of categories. It isn’t the kind of inflation that’s spread broadly across the economy,” Powell stated during a news conference Wednesday. “The supply side will respond, we have a very adaptable, flexible economy and labor market.”
The Federal Reserve is leaving interest rates at historic lows. Still, Powell admits the country's job market still has some ground to cover. KTRH moneyman Pat Shinn describes our recovery as uneven, with lower wage earners feeling the impact more than the upper class.
“We have 8 million fewer people working than before the pandemic,” Shinn explained. “Powell said this is very usual, and quote ‘most of those people are not going to go back to their old job.’”
That's why Powell says the Fed will not reduce its monthly bond purchases, which is 120 billion dollars.