Powell Warns Recent Gains May Transition to Economic 'Slog'

The FOMC's recent projections indicate a solid economic recovery, with unemployment expected to decline to 4% and inflation reaching 2% by the end of 2023. However, the outlook is uncertain due to the ongoing impact of the virus. Initial rapid gains from reopening may slow, leading to a prolonged recovery as some sectors continue to face challenges. Economic improvement has moderated since May and June, with notable increases in permanent job losses and recent layoffs.

How has the pace of economic improvement changed since May and June?

What notable trends are observed in employment, income, and spending data?