Powell: Unemployment Rate Still Low, Labor Market Not the Source of Inflation

BlockBeats News, April 4th, Federal Reserve Chair Powell stated in a keynote speech on the economic outlook that the progress towards the 2% inflation target has slowed down. The Fed's responsibility is to ensure that a one-time surge in prices does not evolve into a persistent inflation issue. The outlook is highly uncertain, with risks of rising unemployment and worsening inflation. The economic uncertainty is high, with increased downside risks, but the economic conditions remain strong. Data indicates a robust economic growth, a balanced labor market, and inflation close to but still above the 2% target. Surveys show that expectations have weakened and uncertainty has increased due to new federal policies, especially trade policies. The Fed 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. (Jin10)