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Powell Presser Begins, Flags Continued Econ Strength

FED
  • Starts with the usual bit about ensuring MonPol will continue to support the economy.
  • On economic developments: Econ activity and employment have "continued to strengthen". Real GDP expected to continue at a strong pace in the second half. The sectors most adversely affected by the pandemic improved in recent month, but the rise in COVID cases slowed recovery. Spending softened in COVID sensitive sectors in July and August.
  • Near-term supply constraints are constraining activity in some industries. Acute in motor vehicle industry due to chip shortage. Partly reflecting the effect of the virus, FOMC revised growth lower this year vs June. Still see rapid growth.

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