US Treasury Secretary Janet Yellen is all set to testify before the House of Representatives’ Financial Services Committee later today, where she is expected to express confidence about the improvement in economic conditions spurred by President Biden’s latest COVID-19 relief package. She is also likely to sound confident that employment levels in the country could make a full recovery and return to pre-pandemic levels by next year.

Fed chairman Jerome Powell is also scheduled to speak at his congressional testimony today, where he will sound optimistic about the US economy recovering at a faster than expected pace and gathering strength. According to Powell, household spending across the US is on the uptick while the housing sector has registered a strong performance in recent times.

However, he will sound cautious about the uneven and incomplete recovery which will require additional support from the Fed, adding, “However, the sectors of the economy most adversely affected by the resurgence of the virus, and by greater social distancing, remain weak, and the unemployment rate — still elevated at 6.2% — underestimates the shortfall, particularly as labor market participation remains notably below pre-pandemic levels.”

With the COVID-19 vaccine rollout program going strong across the country, there is considerable hope among policymakers at the central bank as well as economists that consumer spending and economic growth could improve over the coming months. However, despite the optimism about economic recovery, in its latest monetary policy meeting, the Fed maintained its dovish stance, stating that its bond purchases will continue until substantial progress towards improving employment and inflation to pre-pandemic levels is visible.