Powell: The U.S. economy is experiencing robust expansion, and the labor market is stable

ChainCatcher news, according to Jinshi reports, Federal Reserve Chairman Powell stated that recent indicators suggest that economic activity continues to expand at a robust pace. Boosted by resilient consumer spending, GDP growth for 2024 is projected at 2.5%. Investment in equipment and intangible assets seems to have declined in the fourth quarter, but overall performance for the year remains strong.

After experiencing a slowdown in the middle of last year, activity in the real estate sector appears to have stabilized. In terms of the labor market, conditions remain solid and seem to have settled. Over the past four months, the average monthly job addition has been 189,000. Following an earlier rise, the unemployment rate has remained stable since the middle of last year, standing at 4% in January, still at a low level.

Nominal wage growth has slowed over the past year, and the gap between job openings and workers has narrowed. Overall, a range of broad indicators suggests that labor market conditions are roughly balanced. The labor market is not a significant source of inflationary pressure.