Jerome Powell made a series of comments on the path of monetary policy:
The Fed must determine the relevant situation before deciding to lower interest rates. If the labor market is unexpectedly weak, it will prompt it to take action. He is well aware of the risks of cutting interest rates too early or too late. Wage growth is currently declining towards a more sustainable level, but it is still above the equilibrium level. Inflation may reach the Fed's 2% target by the end of next year or the year after.
When asked about the impact of current political conditions on monetary policy, Jerome Powell strongly supports the Fed's independence in the United States. The US government deficit is huge, and the trend of the deficit is unsustainable. This situation must be resolved sooner or later, and it is best to deal with it as soon as possible. He hopes that the unemployment rate in the United States can stabilize at an appropriate level, and the unemployment rate of 4% is still low. It is expected that the inflation rate should be 2% or below in a year.
