After the FED's decision to keep interest rates steady, Chairman Jerome Powell held a press conference sharing key insights into the economy and future policy.
Key Economic Indicators
Jerome Powell noted that the economy remains strong. Labor market conditions are solid, although inflation is still a bit high. Recent signs suggest consumer spending is slowing, but it is hard to predict how uncertainty will affect the economic outlook.
Current FED Policy
The FED made a technical decision to slow down the pace of balance sheet reduction. Powell highlighted that there is no need to rush policy changes as long as the economy remains strong. He emphasized the importance of focusing on separating signals from noise.
Expectations and Forecasts
According to the FED, if the economy continues on a strong trajectory, policy restraint may be maintained longer. If the labor market weakens, policy could be eased as needed. However, there is a high level of uncertainty about new policy changes and their impact.
The FED continues to closely monitor economic indicators, stressing the need for flexibility in decision-making. Future policy will depend on a range of factors, including the state of the economy and labor market conditions.
