#PowellRemarks Federal Reserve Chair Jerome Powell recently delivered remarks on the economic outlook, highlighting progress in reducing inflation and adjusting monetary policy. Here are the key points:

Current Economic Situation

- *Inflation Progress*: Inflation has declined significantly, reaching 2.5% over the past 12 months, with progress toward the 2% objective resuming after a pause earlier this year.

- *Labor Market*: The labor market has cooled, with unemployment rising to 4.3% from 3.4% in early 2023, primarily due to an increase in workers and slower hiring.

Monetary Policy

- *Rate Cuts*: The Federal Open Market Committee (FOMC) is considering rate cuts, with the timing and pace dependent on incoming data, the evolving outlook, and the balance of risks.

- *Policy Adjustment*: The Fed aims to support a strong labor market while making further progress toward price stability.

Economic Outlook

- *Growth*: The economy continues to grow at a solid pace, with the upside risks to inflation diminishing and downside risks to employment increasing.

- *Inflation Expectations*: Anchored inflation expectations have played a crucial role in facilitating disinflation without the need for economic slack ¹.