#PowellRemarks Jerome Powell, the Chair of the Federal Reserve, has made several notable remarks on the economic outlook and monetary policy. Here are some key points:
-Economic Growth: Powell stated that the US economy has made significant progress toward the dual-mandate goals of maximum employment and stable prices, with economic output growing by more than 3 percent last year and expanding at a 2.5 percent rate so far this year.
- Inflation: Powell noted that inflation has eased substantially from its peak, and the Fed believes it is on a sustainable path to the 2 percent goal. However, inflation is not yet at the goal, and the Fed is committed to finishing the job.
- Monetary Policy: The Fed has been working to reduce policy restraint by lowering the policy interest rate. Powell emphasized that the path for getting to a more neutral setting is not preset and will depend on incoming data and the economic outlook.
- Labor Market: The labor market remains in solid condition, with the number of job openings slightly above the number of unemployed Americans seeking work. Wages are still increasing, but at a more sustainable pace.
In a speech on August 26, 2022, Powell also emphasized the importance of price stability, stating that it is the responsibility of the Federal Reserve and serves as the bedrock of the economy. He noted that restoring price stability will likely require maintaining a restrictive policy stance for some time ¹.
More recently, in a speech on November 14, 2024, Powell discussed the current state of the economy and monetary policy, highlighting the progress made toward the Fed's dual-mandate goals and the ongoing efforts to bring inflation down to the 2 percent objective ².
