#PowellRemarks Jerome Powell, Chairman of the Federal Reserve, has made several notable remarks on the US economy and monetary policy. Here are some key points:
- *Economic Outlook*: Powell believes the US economy has made significant progress toward the Fed's dual-mandate goals of maximum employment and stable prices. He expects inflation to continue declining toward the 2% objective, albeit on a sometimes-bumpy path.
- *Monetary Policy*: The Fed has taken steps to reduce policy restraint, including a quarter-point interest rate cut. Powell emphasizes that the path for future rate adjustments will depend on incoming data and the evolving economic outlook.
- *Inflation*: Powell notes that inflation has eased substantially from its peak, but it's not yet at the Fed's 2% goal. He expects inflation to continue declining, with risks to achieving employment and inflation goals roughly in balance.
- *Labor Market*: The labor market remains in solid condition, with unemployment rates low and labor force participation strong. Powell aims to maintain strength in the economy and labor market while bringing inflation sustainably down to 2%.
- *Fed Independence*: Powell emphasizes the importance of Fed independence, stating that the Fed will make decisions based on its best analysis of the data, without consideration of political or other extraneous factors.
- *Economic Uncertainty*: Powell acknowledges the high level of uncertainty in the economy, citing factors like trade policies, tariffs, and global economic developments. He emphasizes the need for careful analysis and adaptability in monetary policy ¹ ².
