#PowellRemarks

Federal Reserve Chair Jerome Powell recently delivered remarks on the economic outlook at the Economic Club of Chicago. Here are the key points from his speech¹:

Economic Outlook

- The US economy remains solid despite heightened uncertainty and downside risks.

- Labor market is at or near maximum employment with low layoffs and stable unemployment rates.

- Inflation has eased from pandemic highs but remains above the 2% objective.

Monetary Policy

- The Fed will closely track incoming data and update its assessment as the new Administration's policies evolve.

- Tariffs are likely to generate a temporary rise in inflation, and the Fed will balance its dual-mandate goals.

- The Fed aims to keep longer-term inflation expectations well anchored.

Key Statistics

- *GDP Growth*: Expected to slow in the first quarter due to strong imports and modest consumer spending.

- *Inflation Rate*: 2.3% over the 12 months ending in March, with core PCE prices rising 2.6%.

- *Job Market*: Nonfarm payrolls grew by an average of 150,000 jobs per month in the first three months of the year.

Powell emphasized the importance of maintaining price stability to achieve strong labor market conditions. The Fed will continue to analyze incoming data and adjust its policy stance accordingly.