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

- *Economic Progress*: Powell stated that the US economy has made significant progress toward the Fed's dual-mandate goals of maximum employment and stable prices. The labor market remains in solid condition, and inflation has eased substantially from its peak.

- *Inflation*: Powell believes inflation is on a sustainable path to the Fed's 2% goal. He noted that progress on inflation has been broad-based, with estimates indicating total PCE prices rose 2.3% over the 12 months ending in October.

- *Monetary Policy*: The Fed has taken steps to reduce policy restraint by lowering interest rates. Powell emphasized that the path for getting to a more neutral policy setting is not preset and will depend on incoming data and the economic outlook.

- *Risks*: Powell highlighted the risks of reducing policy restraint too quickly or too slowly. He emphasized the importance of carefully assessing incoming data and the evolving outlook to achieve the Fed's dual mandate goals.

- *Tariffs and Inflation*: Regarding tariffs, Powell noted that they are likely to generate at least a temporary rise in inflation. The Fed's role is to keep inflation expectations well-anchored and prevent a one-time increase in prices from becoming an ongoing inflation problem.

- *Federal Reserve Independence*: Powell emphasized that the Fed's independence is crucial for making decisions based on data and analysis, rather than political pressure. He stated that the Fed will only make decisions based on its best thinking to achieve its dual mandate goals ¹ ².