FOMC Chairman Jerome Powell is delivering his remarks on the state of the economy and the policy outlook at the semi-annual testimony before the Senate Banking Committee.

Key quotes

“Monetary policy is a broad tool, can’t specifically target low-wage workers and minority workers.”

“Expecting inflation readings to move up temporarily due to base effects.”

“Could see spending pick up substantially in the second half of the year.”

“Does not seem likely that an increase in spending would lead to large or persistent inflation.”

“Inflation dynamics do not change on a dime.”

“We don’t see how a burst in fiscal support or spending would lead to high inflation.”

“If we get unwanted inflation, we have the tools to deal with it.”

“Over time, growth of balance sheet will slow but asset purchases will continue until substantial further progress seen.”