Powell Says Recovery Still Incomplete, Risks Remain

The Federal Open Market Committee is maintaining low interest rates and asset purchases to support economic recovery. Despite improvements, the labor market remains uneven, with unemployment still high. Inflation has risen due to supply bottlenecks and increased spending, but is expected to moderate. The Fed's new policy framework aims to anchor inflation expectations and achieve maximum employment. Risks from the pandemic persist, but progress in vaccinations is aiding recovery. The Fed will continue to support the economy until recovery is complete.

What measures did the Federal Open Market Committee take to support the economy?

• Increased interest rates

• Reduced asset purchases

• Kept interest rates near zero and maintained asset purchases

• Stopped all fiscal support

Which sector showed notable employment gains despite the overall labor market challenges?

• Agriculture

• Leisure and hospitality

• Technology

• Manufacturing

What is one reason for the recent increase in inflation?

• Decrease in consumer spending

• Reduction in oil prices

• Supply bottlenecks limiting production

• Increase in unemployment

What is the Federal Reserve's longer-run inflation goal?

• 4%

• 3%

• 2%

• 1%

What is the Federal Reserve's stance on interest rates until maximum employment and inflation targets are met?

• Eliminate interest rates

• Decrease rates further

• Maintain current rates

• Increase rates immediately

What technical adjustment did the Federal Reserve make to support money market functioning?

• Lowered the federal funds rate

• Adjusted IOER and overnight RRP rates upward by 5 basis points

• Increased asset purchases

• Reduced fiscal support

What is the Federal Reserve's commitment regarding the economy?

• To support the economy until recovery is complete

• To focus only on inflation control

• To prioritize international markets

• To reduce support immediately