"We remain in a jobs hole that is deeper than that of the Great Recession," Council of Economic Advisers member Heather Boushey said in an interview. "This remains a crisis."
The Commerce Department said on Thursday that factory orders shot up 2.6% after rising 1.6% in December. Economists polled by Reuters had forecast factory orders advancing 2.1% in January. Orders increased 1.3% on a year-on-year basis.
Unfilled orders at factories edged up 0.1% in January after decreasing 0.2% in December.
“Monetary policy is accommodative and it continues to need to be accommodative ... Expect us to move carefully, patiently, and with a lot of advance warning,” before any changes, Powell said in response to questions from Republican lawmakers about whether a faster-than-expected recovery still required crisis-level assistance.
Home resales, which account for the bulk of US home sales, surged 23.7% on a year-on-year basis.
The inventory crunch could ease as builders step up construction, though they are facing challenges from record lumber prices as well as shortages of land and labor.
Retail sales surged by a seasonally adjusted 5.3% last month, the Commerce Department said on Wednesday.
Further gains in sales are expected in the months ahead. The US Congress is considering President Joe Biden's $1.9 trillion recovery plan, which will include an additional $1,400 checks to households.
The ebbing economic momentum, which appears to have spilled over into the new year, could persuade the U.S. Congress to agree to President-elect Joe Biden’s ambitious $1.9 trillion fiscal stimulus plan.