FOMC Press Conference Introductory Statement, April 28, 2021 | Summary and Q&A

April 28, 2021
Federal Reserve
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FOMC Press Conference Introductory Statement, April 28, 2021


Chair Powell discusses the Federal Reserve's commitment to achieving maximum employment and price stability, highlights the progress made in economic activity and employment, addresses concerns about inflation and the housing market, and emphasizes the importance of understanding and exploring central bank digital currencies.

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Key Insights

  • ❓ The Fed remains committed to its dual mandate of maximum employment and price stability.
  • 🎯 The economic recovery is progressing, but more progress is needed, particularly in job creation and achieving inflation targets.
  • ✳️ Concerns about inflation and housing market stability are being carefully monitored, but overall financial stability risks are manageable.
  • 🏦 The Fed is actively exploring and understanding central bank digital currencies and their potential impact on the economy.
  • 🥅 The timing of tapering asset purchases and adjustments to monetary policy will depend on substantial further progress toward the Fed's goals.


April 28, 2021 Chair Powell's Press Conference FINAL Page 1 of 29 Transcript of Chair Powell's Press Conference April 28, 2021 CHAIR POWELL. Good afternoon. At the Federal Reserve, we are strongly committed to achieving the monetary policy goals that Congress has given us: maximum employment and price stability. Today my colleagues on the FOMC and ... Read More

Questions & Answers

Q: Is it time to start talking about tapering yet?

No, it is not time yet. The Fed will let the public know well in advance of any decision to taper asset purchases when substantial further progress toward their goals is achieved.

Q: What if we don't reach herd immunity? Would that affect the Fed's normalization of policy?

The economy's recovery depends on controlling the virus, and full economic recovery will only happen when people are confident it is safe to resume normal activities. The Fed's monetary policy decision will focus on economic progress and the achievement of their goals.

Q: How will the Fed react if inflation expectations rise before full employment is achieved?

It is unlikely that inflation will persistently rise while there is still significant slack in the labor market. If inflation were to move persistently above 2 percent, the Fed would use its tools to bring it back down to mandate-consistent levels.

Q: Are there concerns about housing bubbles and their potential impact on financial stability?

While some housing market indicators are strong, the overall financial stability situation is manageable. The Fed is closely monitoring areas such as money market funds, corporate bond funds, and Treasury market structure to ensure stability.

Summary & Key Takeaways

  • Chair Powell reaffirms the Fed's commitment to achieving maximum employment and price stability through continued monetary policy support and strong guidance.

  • He highlights the positive indicators of economic activity and employment, such as increased household spending, recovery in the housing sector, and improved business investment and manufacturing production.

  • Chair Powell acknowledges the uneven and incomplete nature of the economic recovery, pointing out that progress still depends on the control of the virus and the successful vaccination efforts.

  • He addresses concerns about inflation, stating that the recent increase in inflation is expected to be transitory and primarily driven by base effects and supply bottlenecks.

  • Chair Powell acknowledges the challenges faced by those most affected by the economic downturn, particularly lower-wage workers in the service sector and minority communities.

  • He discusses the Fed's commitment to maintaining an accommodative stance until the employment and inflation goals are achieved and the importance of consistently anchored inflation expectations.

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