Powell: The Economy Is “Doing Well,” but the Fed Stays Alert
Federal Reserve Chair Jerome Powell reaffirmed that there is no need to rush policy decisions, emphasizing that the central bank is well-positioned in its pursuit of 2% inflation.
Powell stated that the economy is “doing well” and that the Fed remains cautious, awaiting further clarity on Donald Trump’s policies before making its next interest rate decision.
Key Takeaways from Powell’s Remarks
The Fed Chair highlighted that “the economy is growing at a solid pace, extending a period of consistent growth supported by resilient consumer spending.”
He also noted that multiple indicators point to a strong and generally balanced labor market.
“While progress in reducing inflation has been broad-based, recent figures remain somewhat above our 2% target,” Powell stated.
“Monetary policy does not follow a predetermined path. If the economy remains strong but inflation fails to make sustainable progress toward 2%, we may maintain policy restraint for a longer period. We will review our long-term objectives and monetary policy strategy in upcoming meetings,” he added.
Labor Department Report
A U.S. Department of Labor report revealed that job growth in February increased compared to the previous month. However, it fell short of economists’ expectations, raising concerns about the economy’s resilience.
The U.S. unemployment rate rose to 4.1% in February, according to data released Friday by the Bureau of Labor Statistics (BLS).
Additionally, 151,000 jobs were created during the first full month under Donald Trump’s new administration—comparable to January’s figure of 143,000 and in line with the 12-month average of 168,000.
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