Fed Chair Powell: Because the U.S. Economy Is Strong ‘We Have the Ability to Take Our Time and Get This Right’

EISEN Chair Powell you ░░░░░░░░ also been on a ░░░░░░░░ and have been on ░░░░░░░░ since last July have ░░░░░░░░ cut rates like the ░░░░░░░░ in June Why not ░░░░░░░░ are you waiting for ░░░░░░░░ So let me say ░░░░░░░░ sitting here last year ░░░░░░░░ didn t there was ░░░░░░░░ lot we didn t ░░░░░░░░ and we didn t ░░░░░░░░ that we were just ░░░░░░░░ to embark on a ░░░░░░░░ a period of seven ░░░░░░░░ of much lower inflation ░░░░░░░░ We didn t realize ░░░░░░░░ the second half of ░░░░░░░░ year was going to ░░░░░░░░ an extraordinary year from ░░░░░░░░ gross standpoint and also ░░░░░░░░ the standpoint of the ░░░░░░░░ market So things actually ░░░░░░░░ out in the second ░░░░░░░░ of last year in ░░░░░░░░ remarkable way Then as ░░░░░░░░ know in the first ░░░░░░░░ of this year we ░░░░░░░░ to have solid growth ░░░░░░░░ the first half actually ░░░░░░░░ growth and a labor ░░░░░░░░ that s still strong ░░░░░░░░ we ve seen continued ░░░░░░░░ balancing in the labor ░░░░░░░░ And inflation after pausing ░░░░░░░░ the first quarter now ░░░░░░░░ signs of resuming its ░░░░░░░░ trend So it s ░░░░░░░░ little bit different journey ░░░░░░░░ where that where that ░░░░░░░░ us is we ve ░░░░░░░░ quite a bit of ░░░░░░░░ in bringing inflation back ░░░░░░░░ to our target while ░░░░░░░░ labor market has remained ░░░░░░░░ and growth has continued ░░░░░░░░ want that process to ░░░░░░░░ I think the last ░░░░░░░░ and the one before ░░░░░░░░ inflation and the one ░░░░░░░░ to a lesser extent ░░░░░░░░ suggest that we are ░░░░░░░░ back on a disinflationary ░░░░░░░░ We want to be ░░░░░░░░ confident that inflation is ░░░░░░░░ sustainably down toward 2 ░░░░░░░░ we start the process ░░░░░░░░ of reducing how tight ░░░░░░░░ policy is of loosening ░░░░░░░░ That s what we ░░░░░░░░ said And what we ░░░░░░░░ like to see is ░░░░░░░░ data like we ve ░░░░░░░░ seeing recently We would ░░░░░░░░ like to see the ░░░░░░░░ market remain strong We ░░░░░░░░ that if we saw ░░░░░░░░ labor market unexpectedly weakening ░░░░░░░░ is also something that ░░░░░░░░ that could call for ░░░░░░░░ reaction EISEN How much ░░░░░░░░ confident do you want ░░░░░░░░ be The PCE number ░░░░░░░░ 6 that wasn t ░░░░░░░░ bad that we got ░░░░░░░░ week Powell That s ░░░░░░░░ So we re actually ░░░░░░░░ a 12 month basis ░░░░░░░░ re actually at 2 ░░░░░░░░ both headline and core ░░░░░░░░ inflation That s that ░░░░░░░░ really significant progress I ░░░░░░░░ we peaked at 5 ░░░░░░░░ in core and the ░░░░░░░░ thing happened in headline ░░░░░░░░ ve gone from 7 ░░░░░░░░ to 2 6 So ░░░░░░░░ we ve made a ░░░░░░░░ of progress We wanted ░░░░░░░░ just want to understand ░░░░░░░░ the levels that we ░░░░░░░░ seeing are a true ░░░░░░░░ on what is actually ░░░░░░░░ with underlying inflation And ░░░░░░░░ we were saying at ░░░░░░░░ last part of last ░░░░░░░░ people were saying You ░░░░░░░░ to declare victory this ░░░░░░░░ over and then we ░░░░░░░░ a quarter of inflation ░░░░░░░░ was well above 3 ░░░░░░░░ we want to be ░░░░░░░░ confident and frankly because ░░░░░░░░ U S economy is ░░░░░░░░ and the labor market ░░░░░░░░ strong we have the ░░░░░░░░ to take our time ░░░░░░░░ get this right now ░░░░░░░░ s what we re ░░░░░░░░ to do EISEN So ░░░░░░░░ Laughter Powell I m ░░░░░░░░ going to be landing ░░░░░░░░ any specific dates here ░░░░░░░░ Let me also say ░░░░░░░░ we re we re ░░░░░░░░ aware that if we ░░░░░░░░ too soon that we ░░░░░░░░ undo the good work ░░░░░░░░ ve done in bringing ░░░░░░░░ inflation and if we ░░░░░░░░ too late we could ░░░░░░░░ undermine the recovery and ░░░░░░░░ expansion and and so ░░░░░░░░ re aware that we ░░░░░░░░ a two sided risks ░░░░░░░░ more so than we ░░░░░░░░ a year ago That ░░░░░░░░ a big change I ░░░░░░░░ say risks are coming ░░░░░░░░ more into balance now.”