Based on the Financial Service website, the U.S. House Committee, Jerome Powell and Janet Yellen will make speeches later tonight. However a speech script has been released. Federal Reserve Chief Jerome Powell is expected to tell Congress on Tuesday that the economy is undergoing a rapid recovery although not yet comprehensive.
Powell is also expected to note that the economy is now far improving driven by swift and proactive action from congress and the central bank to avert a crippling economic downturn.
Even so, the recovery was found to be incomplete. Powell will appear before a House committee on Tuesday, along with Treasury Secretary Janet Yellen before appearing before a Senate panel.
In the written statement it was also stated that Yellen would reveal the same thing. ‘While there are signs of recovery, we must remain vigilant as nearly 10 million jobs were affected compared to before the pandemic outbreak.
Congress and the Fed have announced a trillion -dollar stimulus package into the economy this year including a $ 1.9 trillion aid package this month to regenerate the economy.
"With a rescue plan in place, I am confident that the public will be able to weather the impact of this pandemic," Yellen said in a written statement. On the other hand, Powell is also expected to state that the U.S. economic recovery is growing faster than expected.
Fed officials have raised their forecast for economic growth this year to 6.5%, the fastest growth in 4 decades.
At the same time, the Fed’s policymakers now expect the unemployment rate to drop to 4.5% by the end of 2021 from a previous estimate of 5%. In written testimony, Powell noted that the new budget reflects a strong economy yet the Fed is still monitoring it as there are still many who drop out.
