It's official, folks. No recession is on the cards and the economy is "solid", indicated Jerome Powell, the Chair of the Federal Reserve of the United States in a press conference on Wednesday after the Federal Open Market Committee declared an unchanged interest rate at 4.25% to 4.50%.
On the current economic state of the country, Powell said:
It's a solid economy with decent growth.Jerome Powell
When it comes to policy, Powell termed it "moderately restrictive".
It's now well positioned to respond in a timely way to potential economic developments.Jerome Powell
On the subject of President Donald Trump's aggressive trade tariffs, Powell said that a price impact will be visible at some stage.
The effect of tariffs will depend, among other things, on their ultimate level.Jerome Powell
On the labour market, Powell expressed positive sentiment and called it in "pretty good" condition. The labour market is not crying out for a rate cut, he stated.
The US has defied all kinds of forecasts for it to weaken...eventually it will, but we don't see signs of it now.Jerome Powell
Though times are changing, Powell stated that this will not change how monetary policy is done in the near term.
It's certainly a time of real change, from a geopolitical standpoint, from a trade standpoint, from an immigration standpoint.Jerome Powell
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