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  Federal Reserve Chair Jerome Powell addressed the current economic conditions, monetary policy decisions, and future outlook. He emphasized the Fed's commitment to its dual mandate of maximizing employment and stabilizing prices, noting significant progress over the past two years. Labor Market: Summary Job gains averaged 218,000 per month in April and May, slightly lower than in the first quarter. The unemployment rate rose to 4%, with strong job creation and increased labor force participation, especially among those aged 25-54 and immigrants. Nominal wage growth has eased, and labor market conditions have stabilized to pre-pandemic levels. The median unemployment rate is projected to be 4.0% at the end of 2024 and 4.2% at the end of 2025. Trends The labor market is described as coming into better balance. Unemployment is at 4%, indicating a robust labor market, which Powell considers a significant ach

In a press conference on May 1, 2024, Federal Reserve Chair Jerome Powell addressed the economic outlook and monetary policy decisions. Here's a breakdown of key points delivered by Powell: Inflation: Powell highlighted a decrease in inflation over the past year alongside a strong labor market. However, he emphasize that inflation remains higher than desired, and its further reduction is uncertain. The Federal Open Market Committee (FOMC) has decided to maintain the policy interest rate unchanged and continue reducing securities holdings, albeit at a slower pace. While acknowledging the downward pressure on economic activity and inflation due to the current monetary policy stance, yet he noted that the recent months to have shown a lack of progress in inflation reduction, prompting continued vigilance. Economic Growth: Economic indicators suggest ongoing solid expansion, although GDP growth slowed from the previous quarter. Notably, Private Domestic Final Purchases, a key indicator

  In-Depth Summary of Federal Reserve Chair Powell's Press Conference (March 20, 2024) Key Takeaways: Progress Made, But Inflation Remains High: The Fed acknowledges progress in lowering inflation while maintaining a strong labor market. However, inflation is still above the 2% target, and achieving both goals remains uncertain. Interest Rates on Hold, Potential Cuts Later in 2024: The Fed kept interest rates unchanged at 5.25% to 5.5% but hinted at potential rate cuts later this year if economic conditions evolve as expected. Focus on Maintaining Price Stability: The Fed prioritizes bringing inflation down to 2% for long-term economic health and maximum employment. Gradual Balance Sheet Reduction: The Fed plans to slow the pace of reducing its bond holdings to ensure a smooth transition in financial markets Additional Takeaways The Federal Open Market Committee (FOMC) will likely hold interest rates steady and slow the pace of reducing the Fed's balance sheet ( asset r