#PowellRemarks Chairman Jerome Powell's recent remarks highlight the Federal Reserve's ongoing efforts to manage the economy and control inflation. Here are some key points from his speeches:

Economic Outlook

- The US economy has made significant progress toward the Fed's dual-mandate goals of maximum employment and stable prices.

- Economic growth has been strong, with GDP expanding over 3% last year and 2.5% so far this year.

- The labor market remains solid, with the unemployment rate at 4.1% and wages increasing at a more sustainable pace ¹.

Inflation

- Inflation has eased substantially from its peak but is still above the Fed's 2% goal.

- Powell emphasized the need for greater confidence that inflation is moving sustainably down to 2% before considering rate cuts.

- Recent inflation readings have been higher than expected, but the Fed believes these are just bumps in the path to achieving their goal ² ¹.

Monetary Policy

- The Fed has lowered its policy interest rate by 0.25% and is committed to maintaining economic strength while reducing inflation.

- Powell stated 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 Fed is attentive to risks on both sides, including the potential for inflation to reverse progress or for policy to be eased too slowly, weakening economic activity and employment ¹.

Key Takeaways

- *Economic Growth*: Strong growth, with GDP expanding over 3% last year and 2.5% so far this year.

- *Inflation Goal*: Fed aims to achieve 2% inflation rate sustainably.

- *Monetary Policy*: Fed is cautious in adjusting policy rates, prioritizing data-driven decisions.

- *Labor Market*: Solid condition, with unemployment at 4.1% and wages increasing at a more sustainable pace.