#PowellRemarks Jerome Powell, Chair of the Federal Reserve, recently shared his insights on the economic outlook. Here are the key points from his remarks:

Economic Outlook

- The US economy has made significant progress toward the dual-mandate goals of maximum employment and stable prices.

- Economic growth has been strong, with a 2.5% expansion rate so far this year, supported by increases in disposable income and solid household balance sheets.

- The labor market remains in solid condition, with low unemployment rates and wage growth moderating but still outpacing inflation ¹.

Inflation

- Inflation has eased substantially from its peak, but it's still above the 2% objective, with recent readings showing total PCE prices rose 2.3% over the 12 months ending in March.

- The Fed is committed to bringing inflation down to the 2% goal, and policymakers are closely tracking incoming data to make informed decisions ².

Monetary Policy

- The Fed has taken steps to reduce policy restraint, lowering the policy interest rate by 0.25% recently.

- Policymakers are carefully assessing incoming data and the evolving outlook to determine future adjustments to the target range for the federal funds rate.

- The path for getting to a more neutral policy setting is not preset, and the Fed will continue to analyze data and risks to achieve its dual-mandate goals ¹.

Challenges Ahead

- The new Administration's policy changes, including tariffs, may lead to higher inflation and slower growth.

- The Fed will need to balance its maximum employment and price-stability mandates, keeping longer-term inflation expectations well anchored ².