Takeaways from the FED's MPC speech May 24'
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