Fed chair highlights significant progress US economy made toward 2 percent inflation


(MENAFN) On Tuesday, US Federal Chair Jerome Powell highlighted the significant progress the American Economy has made toward the Federal Reserve's 2 percent inflation goal over the past two years. During his semiannual Monetary Policy Report to Congress, Powell noted that labor market conditions, while cooling, remain robust. He emphasized that the risks associated with achieving the Fed's dual goals of employment and inflation are becoming more balanced.

Powell pointed out that recent indicators demonstrate that the US economy continues to grow at a solid pace. He remarked that gross domestic product (GDP) growth appeared to have moderated in the first half of the year, following remarkable strength in the latter half of the previous year. Despite this moderation, private domestic demand has remained strong, with consumer spending showing slower yet still substantial increases. Additionally, the economy has experienced moderate growth in capital spending and an uptick in residential investment so far this year.

In his testimony before the Senate Committee on Banking, Housing, and Urban Affairs in Washington, D.C., Powell attributed the strong performance of the American economy over the past year to improving supply conditions, which have supported resilient demand. He highlighted that these factors collectively contribute to the overall stability and growth of the economy as it moves closer to the Fed's inflation target.

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