Powell: The unemployment rate remains low, and the labor market is not a source of inflation

ChainCatcher message, Federal Reserve Chairman Powell stated that the process of achieving the 2% inflation target has slowed down. The Fed's responsibility is to ensure that one-time price level increases do not evolve into a persistent inflation problem. The outlook is highly uncertain, with elevated risks of rising unemployment and worsening inflation. While uncertainty is high and the risks of economic downturn are increasing, the economic situation remains good.

Data indicates that economic growth is robust, the labor market is balanced, and inflation is close to but still above the 2% target. Surveys show that expectations have weakened and uncertainty has increased due to new federal policies, particularly trade policies. The Fed system is closely monitoring the relationship between hard data and soft data. The unemployment rate remains low, and the labor market is not a source of inflation.