Jerome Powell on the State of the US Economy and Upcoming Challenges

by Giorgi Kostiuk

a year ago

Inflation and Economic Activity
Future Projections
Labor Market and Public Debt

Amid concerns about the weak US economy, Federal Reserve Chairman Jerome Powell assures the public that the situation is under control.

Inflation and Economic Activity

Inflation, edging closer to the Fed’s target of 2%, shows significant improvement from recent surges, although it still exceeds the ideal level. Meanwhile, economic activity remains steady.

Future Projections

Powell projects a 2% economic growth rate for 2024, which he expects to remain stable through 2027.

Our monetary policy actions are guided by our dual mandate to promote maximum employment and stable prices for the American people. Our primary focus is on bringing down inflation, and appropriately so.Jerome Powell

Labor Market and Public Debt

The labor market remains a major concern despite historically low unemployment rates. Another significant issue is public debt, which reached around 93% of GDP in 2023 and could approach 100% by the end of the decade. If investors start losing confidence, borrowing costs could rise, making it harder for the economy to recover in the long term.

While the labor market and public debt remain major challenges for the US economy, Fed Chairman Jerome Powell remains optimistic and confident that inflation and economic activity are under control.