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August 27, 2021
"Despite today's challenges, the US economy is on the right track" for a 'strong' labor market and "high levels of employment and participation, widely shared wage benefits and inflation close to our target of stability of labor. prices ". On this positive note, Federal Reserve Chairman Jerome Powell concludes the speech at the Jackson Hole seminar, which annually brings together all bankers in the world.
Powell recalled how "before the pandemic, we saw the tremendous benefits a strong labor market can bring to our society. Labor market conditions are improving but are turbulent, and the pandemic continues to threaten not only health and life, but also economic activity "and the Fed will continue to follow the developments relating to the Delta variant.
During the meeting, the president confirmed the US Central Bank is ready to start tapering, that is the gradual end of the monetary policy stimulus, before the end of the year even if 'however he has shown himself cautious on the reduction path aid, because a premature reduction in aid could be "particularly harmful". Currently, the Fed has a $ 120 billion-a-month government bond ($ 80 billion) and mortgage-backed securities ($ 40 billion) buying program to support the economy.