#PowellRemarks
Federal Reserve Chair Jerome Powell recently delivered remarks on the economic outlook, highlighting progress toward the dual-mandate goals of maximum employment and stable prices. Here are the key points:
Economic Progress
- The US economy has made significant progress, growing over 3% last year and expanding at a 2.5% rate this year.
- The labor market remains in solid condition, with the number of job openings slightly above the number of unemployed Americans seeking work.
- Inflation has eased substantially from its peak, with estimates indicating a 2.3% increase in total PCE prices over the 12 months ending in October.
Monetary Policy
- The Federal Open Market Committee (FOMC) lowered the policy interest rate by 0.25% to reduce policy restraint.
- 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.
- The FOMC is committed to maintaining the economy's strength by returning inflation to the 2% goal while supporting maximum employment.
Outlook
- Powell expressed confidence that inflation will continue to come down toward the 2% objective, albeit on a sometimes-bumpy path.
- The labor market is expected to remain strong, with the current policy rate providing ample room to respond to potential risks.
- The FOMC will carefully assess incoming data and adjust policy accordingly to achieve its dual mandate goals