WASHINGTON, D.C. – In a recent interview with CBS News’ 60 Minutes, Federal Reserve Chair Jerome Powell discussed the state of the U.S. economy and addressed concerns about inflation and interest rates.
During the interview, Powell touched on various topics, including the recent decrease in inflation, the strength of the labor market, and the Fed’s commitment to restoring price stability. He emphasized the need for more evidence that inflation is moving sustainably down to 2% before the Fed takes the important step of beginning to cut interest rates.
Powell also highlighted the significance of the 2% inflation target and explained the importance of returning inflation to that level over time.
The Chair discussed the risks involved in moving too soon or too late in terms of interest rates. He mentioned the danger of setting off inflation or unintentionally causing a recession and emphasized the need to balance those risks to ensure positive economic outcomes.
When asked about the impact on prices due to the decrease in inflation, Powell noted that while the overall price level doesn’t tend to decrease, certain goods and services may experience price declines while others may see price increases. He highlighted the significance of maintaining a balanced approach to the economy and the need for patience from the American people.
Regarding the global economy, Powell acknowledged the challenges faced by the world economy, particularly geopolitical risks. He emphasized the importance of American engagement with the world and its role in supporting and defending democracy and economic stability.
The Chair also addressed challenges in the labor market, discussing factors contributing to the stabilization of the labor market, such as the return of workers and the resumption of immigration.
Looking ahead, Powell expressed cautious optimism about the future of the U.S. economy, highlighting the strength of the current economic conditions and the potential for further improvements.
Overall, the interview provided valuable insights into the current state of the U.S. economy and shed light on the Fed’s perspective on various economic issues. It also offered a glimpse into the challenges and opportunities facing the global economy in the coming years.