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As Fed readies for taper, Chair Powell convenes listening event By Reuters

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© Reuters. FILE PHOTO: Federal Reserve Chairman Jerome Powell speaks at a hearing of the U.S. House Oversight and Reform Select Subcommittee on the coronavirus epidemic, held on Capitol Hill, Washington, U.S.A, June 22, 2021. Graeme Jennings/Pool via REUTERS/File Photo

(Reuters) – Days after reaching broad consensus that labor markets have healed enough for the Federal Reserve to soon begin withdrawing support, Fed Chair Jerome Powell on Friday convened a listening session with a broad range of economic players to learn more about the still uncertain outlook.

Powell didn’t elaborate on the Fed Chair’s economic or monetary outlook. This was what he had presented at Wednesday’s end of a Fed two-day meeting.

Powell indicated that the Fed had met its benchmarks for tapering monthly asset purchases. Powell added that the Fed needed only to release one more monthly “reasonably high” jobs report before they pull the trigger in November.

However, Fed policymakers are eager to prevent repeating previous mistakes and not withdraw support too fast or wait too long to allow inflation to grow.

Powell and top Fed officials were due to meet with a variety of people on Friday, including the president of Raleigh’s North Carolina restaurant, superintendent of Philadelphia public schools and the former president of Screen Actors Guild. Also, they will hear from others about the conditions throughout the nation, such as the Arizona director of a home owner counseling service and the direct past president for the Screen Actors Guild.

Powell spoke at the event in prepared remarks. He stated that most of us are dealing with changes in our workplaces. These include safety protocols that have half-lives uncertain to fundamental shifts within how we operate in all areas, such as food production and movie distribution. There are still uncertainties in the future, as business plans and outlooks need to be revised.

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