Fed Chair Jerome Powell said in a speech yesterday there’s a “remarkably positive outlook” in the economy. And the forecasts are “not too good to be true”. The US is now in favorable condition with unemployment rate at near 20-year low at 3.9%. And Inflation is running near Fed’s target of 2%. A wide range of data and prices also supports a positive view while these favorable conditions are forecast to continue.
Powell added that the ” historically rare pairing of steady, low inflation and very low unemployment is testament to the fact that we remain in extraordinary times”. And, Fed’s policy of “gradual interest rate normalization” showed the effort to balance the risks to extend the expansion, maintain maximum employment, low and stable inflation.