Powell speech: Factors holding back employment will pass

FOMC Chairman Jerome Powell is responding to questions after delivering the US Federal Reserve's semiannual Monetary Policy Report to the US House Committee on Financial Services.

Key quotes

"If Fed sees inflation remaining materially higher for a period of time, threatening inflation expectations, then Fed will change its policy."

"There is every reason to think that employment can get back to pre-pandemic levels."

"Demand for labor is very, very high."

"Factors holding back employment will pass and there will be strong job creation."

"Fed has not made any decision to change its merger standards, monitoring carefully."

"MBS purchases are not especially important with what is happening with housing prices, but are a factor."

"Housing market will factor into the Fed's discussion on tapering and its composition."

"US economy is a long way from full employment, still a ways to go."

"Our test for tapering is appropriate, making progress toward that."

About Jerome Powell (via Federalreserve.gov)

Jerome H. Powell took office as Chairman of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term. Mr. Powell also serves as Chairman of the Federal Open Market Committee, the System's principal monetary policymaking body. Mr. Powell has served as a member of the Board of Governors since taking office on May 25, 2012, to fill an unexpired term. He was reappointed to the Board and sworn in on June 16, 2014, for a term ending January 31, 2028.