Jerome Powell spoke in a calm, steady tone the kind of tone he uses when he wants the market to know there’s no sudden shift coming. He said the outlook for jobs and inflation hasn’t changed much since September, meaning the Fed sees no reason to rush into new action.
He also mentioned that before the government shutdown, data hinted the economy might actually be on firmer ground than expected. Inflation, measured by total and core PCE, is still hovering around 2.8 percent not perfect, but not alarming either. Still, Powell admitted that tariffs are starting to make some goods more expensive, which could keep prices sticky for longer.
In simple words, Powell was saying: “Nothing major has changed, but we’re keeping an eye on everything.” The Fed isn’t ready to celebrate victory over inflation, but it’s also not panicking. It’s a moment of watchfulness steady, patient, and cautious.
Markets wanted surprises but Powell gave them balance. And in this climate, balance might be the best the economy can ask for.