#PowellRemarks

Federal Reserve Chair Jerome Powell recently shared his insights on the economic outlook, highlighting the US economy's resilience and progress toward the Fed's dual-mandate goals of maximum employment and stable prices. Here are the key points from his remarks:

# Economic Growth and Labor Market

- The US economy has shown remarkable growth, expanding at a 2.5% rate this year, supported by strong consumer spending and business investment.

- The labor market has cooled down from its previously overheated state, with the unemployment rate at 4.1%, still historically low.

- Job gains have slowed, and wage growth has become more sustainable ¹.

# Inflation and Monetary Policy

- Inflation has declined significantly, reaching 2.3% over the 12 months ending in October, and is expected to continue its downward trend.

- The Fed has taken steps to reduce policy restraint, lowering the policy interest rate by 0.25% to maintain economic strength and support maximum employment.

- The central bank is committed to achieving its 2% inflation goal while maintaining a strong labor market.

# Key Takeaways

- The economy is not showing signs that require immediate action, allowing the Fed to approach decisions carefully.

- The path for the policy rate will depend on incoming data and the economic outlook.

- The Fed remains committed to its dual mandate, aiming to return inflation to its objective without causing significant unemployment increases ¹.