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Powell: Aggregate Demand Has Been Strong

FED
  • GDP rose 6.5% in 1st half, reflecting vaccinations, reopening of the economy, etc. In Q3 growth slowed notably, stemming from Delta variant that held back recovery in sensitive sectors; activity restrained by supply constraints/bottlenecks, notably in auto industry. Aggregate demand has been strong with mon /fiscal policy support and the healthy financial position of households and businesses. With Covid receding further, growth should pick up this quarter.

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