Powell Says 'We Expect the Labor Market to Continue to Be Strong'

IconCryptoNewsTerminal Staff13 Jun, 2024

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Powell Says 'We Expect the Labor Market to Continue to Be Strong'

The Federal Reserve Chair, Jerome Powell, stated in a press conference after the Federal Open Market Committee (FOMC) meeting that "We expect the labor market to continue to be strong." He also mentioned that "the recent monthly inflation readings have come in somewhat softer". Powell's comments indicate that the Fed remains optimistic about the labor market. The unemployment rate is currently at a low 3.5%, and there are more than 10 million job openings. This suggests that businesses are still hiring and the economy is continuing to grow. However, Powell also acknowledged that inflation remains a concern, and the Fed is committed to bringing it down to its target of 2%. The recent inflation readings have been somewhat softer than expected, but Powell cautioned that it is too early to declare victory. The Fed raised interest rates by 25 basis points at its March meeting, and it is expected to continue raising rates throughout the year. Powell said that the Fed will be data-dependent in its decisions and will adjust its policy stance as needed.

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