Jerome Powell expresses optimism on US economic outlook, inflation control
Date
7/16/2024 5:35:49 AM
(MENAFN) Federal Reserve Chairman Jerome Powell expressed optimism about the US economy, emphasizing that he does not foresee a recession or significant economic turmoil ahead. Speaking at a meeting of the Economic Club of Washington, Powell underscored that a severe economic downturn is not the most probable scenario currently facing the nation.
Addressing concerns about inflation, Powell highlighted that recent data from the second quarter of this year indicated notable progress in bringing inflation rates closer to the Federal Reserve's target range. He acknowledged three consecutive positive inflation readings during this period, suggesting a favorable trajectory towards achieving price stability.
Specifically, Powell noted that the consumer price index rose by 2.1 percent annually in the second quarter, excluding volatile food and energy prices. Despite this index traditionally running higher than the Federal Reserve's preferred personal consumption expenditures price index, Powell indicated satisfaction with the recent inflation trends.
Regarding monetary policy, Powell hinted at the possibility of future adjustments, implying that the Federal Reserve may not be far from considering interest rate reductions. He emphasized the importance of gaining further confidence that inflation is sustainably moving towards the Fed's 2 percent target before initiating any policy easing measures.
Powell's remarks, likely his final public comments before the Federal Reserve's upcoming July 30-31 meeting, suggest a cautious optimism tempered by the need for continued vigilance and data monitoring. His assessment reflects a balanced approach towards economic stability and inflation management in the current economic environment.
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