Fed Chair Powell's testimony reiterated the Fed's old saws
Fed Chair Powell's testimony reiterated the Fed's old saws, saying the FOMC can continue gradually reducing accommodation in his written testimony. He said the "FOMC will continue to strike a balance between avoiding an overheated economy and bringing PCE price inflation to 2 percent on a sustained basis. While many factors shape the economic outlook, some of the headwinds the U.S. economy faced in previous years have turned into tailwinds." The economic outlook remains strong, and fiscal policy is becoming more simulative, while foreign demand for U.S. exports is on a firmer trajectory. Meanwhile, inflation remains below the 2% target, and "further gradual increases in the federal funds rate will best promote attainment of both of our objectives. As always, the path of monetary policy will depend on the economic outlook as informed by incoming data."