Following the Federal Reserve's meeting where interest rates were left unchanged, Chair Jerome Powell made several significant statements regarding the economic state and inflation outlook.
Economic Condition
In his remarks, Powell noted that the economy is in solid shape. The unemployment rate remains low, and labor market conditions are strong. According to Powell, many indicators show the economy is near maximum employment.
Inflation and Expectations
Powell indicated that inflation continues to run slightly above targets notwithstanding its decline. He added that rising inflation expectations in recent months are mainly due to changes in customs duties.
Future Projections and Uncertainties
Chair Powell also emphasized that there is a high degree of uncertainty regarding economic policy forecasts. While the committee anticipates a slowdown in economic growth, most members do not support more than one rate cut this year.
Jerome Powell's remarks on economic issues and inflation underscore the current uncertainties and complex challenges that the economy faces in the coming months.
