Fed Chair Jerome Powell said in a speech yesterday that “monetary policy is now well positioned to support a strong labor market and return inflation decisively to our symmetric 2 percent objective.” He added that “if the outlook changes materially, policy will change as well.” The comments reaffirmed the case that Fed has done with mid-cycle adjustment. The default position is to hold interest rates unchanged at current level.
On the economy, he said the as the economy continued its record 11th year of expansion, the benefits are now reaching many communities, and there is plenty of room to build on the impressive gains achieved so far. Also, “outlook for further progress is good: Forecasters are generally predicting continued growth, a strong job market, and inflation near 2 percent.”
