#PowellRemarks Jerome Powell, Chair of the Federal Reserve, has made several recent remarks on the economic outlook. Here are some key points

- *Inflation*: Powell stated that inflation has declined significantly since its peak in mid-2022, with the current rate nearing the Fed's 2% objective. However, progress on inflation has been gradual, and recent readings remain above the target.

- *Monetary Policy*: The Fed has maintained a restrictive monetary policy stance to combat inflation, but Powell indicated that the time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.

- *Labor Market*: The labor market has cooled considerably from its formerly overheated state, with the unemployment rate rising to 4.3%. However, job gains remain solid, and the labor market appears to be in solid condition and broadly in balance.

- *Economic Growth*: The economy continues to grow at a solid pace, with GDP growth estimated at 2.4% in 2024. Powell emphasized that the Fed's goal is to restore price stability while maintaining a strong labor market, avoiding sharp increases in unemployment.

- *Tariffs and Policy Changes*: Powell noted that the new administration's policy changes, including tariffs, will likely have significant economic effects, including higher inflation and slower growth. The Fed will continue to monitor these developments and update its assessment accordingly.

Some notable quotes from Powell include:

- "My confidence has grown that inflation is on a sustainable path back to 2 percent."

- "The time has come for policy to adjust."

- "We will continue to carefully monitor the incoming data, the evolving outlook, and the balance of risks."