BREAKING: JEROME POWELL ACKNOWLEDGES INCREASED DOWNSIDE RISKS TO THE LABOR MARKET 🪙
"The framework requires a balanced approach when the central bank's objectives are in tension."
"The emphasis of the previous framework on a set of excessively specific economic conditions may have led to some confusion."
"The framework removes language that indicates that the zero lower bound is a defining feature of the economy."
"The new framework is designed to operate under a variety of economic conditions."
"The idea of a deliberate overshoot of moderate inflation proved to be irrelevant."
"The new framework emphasizes the commitment to act forcefully to ensure that long-term inflation expectations remain well anchored."
"The Fed still believes it may not need to tighten policy solely based on uncertain estimates that employment may be beyond its maximum sustainable level."
"The language regarding the deficit in the previous statement posed a communication challenge and is removed in the new framework."
"Preventive action may be warranted if a tight labor market poses a risk to price stability."
"The shift in the balance of risks may justify an adjustment in the policy stance."
"The stability of the unemployment rate allows the Fed to 'proceed with caution' while considering changes in the policy stance."
"Inflation risks are tilted to the upside, employment risks to the downside."
"The Fed's objectives are in tension; they must balance both sides of the Fed's mandate."
"Downside risks to the labor market are increasing."
"GDP growth has notably slowed, reflecting a deceleration in consumer spending."
