🚨 Breaking News!!! 🚨
Powell Forecasts Inflation May Drop to 2% by the End of Next Year or the Following Year
On July 2, BlockBeats reported that Federal Reserve Chairman Jerome Powell stated inflation could return to 2% by the end of next year or the year after. Powell emphasized that the Fed's current policy stance remains restrictive and appropriate.
Key Highlights:
📈 Catch-Up Inflation: Powell highlighted that some of the inflation in the service sector is "catch-up" inflation.
💼 **Labor Market**: The labor market is showing signs of cooling, and wage growth, while still above the desired
equilibrium is beginning to decline to a more sustainable level.
🔍 Challenges Ahead: Reducing inflation in the service sector remains particularly challenging.
Powell underscored the importance of the ongoing adjustments in the labour market, indicating that it is moving towards a healthier balance.
Overall, Powell's comments suggest a cautious optimism regarding the future of inflation and the effectiveness of the Fed's policies in steering the economy towards stability.
Stay tuned for more updates! 📊✨