FED President Jerome Powell addressed the state of the economy and the FED's monetary policy in a recent meeting with Marketplace host Kai Ryssdal.

Powell opened his speech by acknowledging that the initial assessments of Personal Consumption Expenditures (PCE) were as anticipated, which he found positive. He also noted that the February data aligned with the FED's objectives.

In order to obtain a clearer picture of inflation, Powell highlighted the importance of quality data, echoing sentiments from the previous year. He affirmed that the FED's strategy remains steady and that they are making advancements. Powell reassured that they have not overreacted to past favorable data and will maintain this stance towards recent months showing spikes.

Warning against premature rate cuts and delayed responses, Powell stressed the potential detrimental impact on the economy and job market. He underscored the economy's potential for unexpected outcomes and emphasized the presence of dual risks.

Reiterating the FED's readiness for unforeseen economic shifts, Powell expressed confidence in the economy's resilience.

Powell emphasized the FED's preparedness to respond to various triggers with monetary policy. He emphasized the importance of refraining from hasty interest rate reductions, advocating for prudence and certainty in decision-making. Identifying the accuracy of decisions as paramount, Powell highlighted the policy's adaptability with a brief lag, allowing flexibility in handling diverse scenarios.

Powell emphasized the cautious approach towards reducing interest rates, pledging to await stronger conviction before such adjustments. Key points summarized by Powell include acknowledging unpredictable data trends, anticipating gradual movement towards a 2% inflation target, keeping rates stable if assumptions fail, uncertainty regarding future interest rates, and his personal outlook on interest rate levels post-pandemic.

(Note: This response should not be considered as financial advice.)