Powell is very focused on the supply side now.
Most of his responses were focused on the fact the supply chain issues improving seem to have been the force behind the performance of the economy last year, along the decline in inflation until now.
He points to immigration being a big driver of supply improvement in the labor market.
To which I pointed last month it was indeed surprising to me that most net jobs in the US have gone to foreigners since 2018, but especially since 2020.
However, he says he is not sure how much improvement we can get from supply going forward, and how much of this will have to fall instead under demand constraints. The problem is, that demand and spending are still very high.
