Over the first half of 2021, progress on vaccinations has led to a reopening of the economy and strong economic growth, supported by accommodative monetary 

and fiscal policy. However, the effects of the COVID-19 pandemic have continued to weigh on the U.S. economy, and employment has remained well below pre-pandemic levels. Furthermore, shortages of material inputs and difficulties in hiring have held down activity in a number of industries. In part because of these bottlenecks and other largely transitory factors, PCE (personal consumption expenditures) prices rose 3.9 percent over the 12 months ending in May.

Over the first half of the year, the Federal Open Market Committee (FOMC) held 

its policy rate near zero and continued to purchase Treasury securities and agency mortgage-backed securities to support the economic recovery. These measures, along with the Committee’s guidance on interest rates and the Federal Reserve’s balance sheet, will help ensure that monetary policy continues to deliver powerful support to the economy until the recovery is complete.