Powell played down recession risks amid strong economic growth.
Key receivers
Powell remains confident the economy will remain strong despite external risks. Inflation has moved closer to the Fed's target, prompting a cautious but flexible policy response.
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Federal Reserve Chairman Jerome Powell expressed his optimism about the US economy during today's Federal Open Market Committee (FOMC) press conference and downplayed the possibility of a recession.
“I don't see anything in the economy that suggests there's a high chance of a downturn right now,” he said, citing strong growth, inflation and a strong labor market.
The Federal Reserve adjusted its monetary policy, lowering the federal funds rate to 4.75%-5%, making progress in controlling inflation.
“Inflation is now very close to our objective, and we have more confidence that inflation is moving towards a sustainable 2%,” Powell said.
Although the labor market is relatively strong, Powell emphasized the importance of vigilance.
“Retail sales show the economy is growing at a strong pace, which should support labor markets,” he said, adding that wages and participation rates are healthy, but the labor market will be “closely watched.”
While the Fed is cautious about easing policy too quickly, Powell said, “We now see the risks to achieving our jobs and inflation in a balanced way.” Despite external risks, he remains confident in the resilience of the economy.
Future policy
Powell stressed that the Fed's recent 50-basis-point rate cut should not be seen as the norm, with the Fed taking a flexible approach to its meetings. “We are not on a pre-planning course,” he said, stressing adaptation to future decisions.
He also expressed broad support among FOMC members for more rate cuts this year, with 19 participants expecting more cuts, indicating a strong consensus to ease further to balance inflation and growth.
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