Federal Reserve Chair Jerome Powell reassured the public on Friday, emphasizing that there is no cause for concern regarding an imminent recession in the U.S. economy.
Federal Reserve Chair Jerome Powell expressed optimism about the state of the economy during a conference in San Francisco, stating that growth is robust. He emphasized that the economy is currently in a favorable position and dismissed any concerns of a recession or imminent economic downturn.
In a widely hailed achievement, inflation has undergone a significant decline without causing a severe economic downturn. The consumer price index (CPI), a key indicator of inflation, reached its peak at 9.1 percent in June 2022 but has now dropped to 3.2 percent. This decline is being referred to as a “soft landing” by many experts.
During its most recent meeting earlier this month, the Federal Reserve decided to once again maintain its baseline interest rate within the range of 5.25 to 5.5 percent, where it has been since last summer. Powell has consistently emphasized the need for the central bank to observe further positive economic data before considering any rate cuts.
According to the data, PCE inflation experienced a 0.3 percent increase from the previous month and a 2.5 percent increase year-over-year in February.
Powell stated on Friday that the most recent figures were “in line with what we expected.” He stressed that the Federal Reserve still anticipates inflation to gradually decrease, albeit with some bumps along the way.
