#PowellRemarks Federal Reserve Chair Jerome Powell recently shared his insights on the US economy and monetary policy. Here are the key points from his remarks ¹:

Economic Outlook

- The US economy has made significant progress toward the Fed's dual-mandate goals of maximum employment and stable prices.

- Economic growth has been robust, with GDP growing over 3% last year and 2.5% so far this year.

- Consumer spending has remained strong, supported by increasing disposable income and solid household balance sheets.

Labor Market

- The labor market has cooled off from its previously overheated conditions and is now back to more normal levels.

- Job openings slightly exceed the number of unemployed Americans seeking work.

- Wage growth has slowed to a more sustainable pace.

Inflation

- Inflation has decreased substantially from its peak, but it's not yet at the Fed's 2% goal.

- Core measures of goods and services inflation, excluding housing, have returned to rates closer to those consistent with the Fed's goals.

- Housing services inflation is expected to continue its gradual decline.

Monetary Policy

- The Fed has lowered the policy interest rate by 1/4 percentage point to reduce policy restraint.

- The committee is confident that with appropriate policy adjustments, the economy can maintain strength while inflation moves sustainably down to 2%.

- Future policy decisions will depend on incoming data and the evolving economic outlook.