Jerome Powell, speaking after the Fed's meeting, elaborated on the state of the US economy and the key focuses of monetary policy.
Economic Condition and Inflation
Powell noted that the economy is in a solid position, though inflation is slightly above targets. He added that the Fed's current policy stance is advantageous, and despite slowing economic growth, many long-term indicators align with the Fed's goals.
Employment and Markets
The Chairman stated that the unemployment rate remains low and labor market conditions are generally stable. Wage growth has slowed but is still above inflation levels. Powell emphasized that indicators show the labor market is close to full employment.
Monetary Policy Outlook
According to Powell, the impact of tariffs on inflation may have a short-lived effect. He reported that a policy review is expected to be completed by the end of summer, and new data will assist the Fed in determining its future policy direction.
Thus, Jerome Powell's remarks highlight the complexity of the current economic situation, as well as the necessity for careful evaluation of inflation expectations and labor market conditions in future monetary policy.
