Fed Powell is talking at the Economic Club of Washington:
Economy performed really well over the last couple of yearsThis year expected economy to slow and inflation to continue to make progress. Something like that is happeninglabor market no tighter than before the pandemic2Q of inflation does represent progress with three better readingsNow that inflation is coming down will look at both mandates.If we did see unexpected weakening in labor market, that would merit reaction from usNot going to send any signal on any particular meetingWill make decisions based on evolving data and outlookThe Feds undertaking is to make decisions on data and only on data, not politics.If the Fed waited for inflation to get a 2% to cut it has waited too long.We want to have greater confidence that inflation is moving sustainably down toward 2%What increases their confidence is better inflation data, we have been seeing that lately.Fed takes confidentiality seriouslyInflation coming out of the pandemic was out of the goods sector helped by the supply chain.We saw that goods inflation as temporaryWe overestimated how quickly the economy would return to normal.
This article was written by Greg Michalowski at www.forexlive.com.
