❗️ Jerome Powell (head of #FED ):
✔ Lowering interest rates is not advisable until the Fed is convinced of a sustained decline in inflation.
✔ Higher inflation is not the only risk we face.
✔ More good macro data will strengthen our confidence in the inflation path to 2%. (Q1 data is still inconclusive)
✔ Restrictive monetary policy helps reduce inflation.
✔ The risks of the Fed's dual mandate are balanced.
✔ The US economy continues to grow at a strong pace.
✔ GDP growth slowed in the first half of this year, after impressive growth in the second half of last year.
✔ Private domestic demand remains strong, with slower but still robust growth in consumer spending.
✔ Labor market conditions have returned to pre-pandemic levels—strong but not overheated.
✔ The unemployment rate increased but was still low at 4.1%.
✔ Inflation has decreased markedly over the past couple of years, but is still above the target of 2.0%.
✔ A Fed rate cut that is too early or too large could slow down or even reverse the progress we have seen on inflation + weaken economic activity and employment.
J. Powell speaks before the US Senate Banking Committee with a report on monetary policy.