Federal Reserve Chair Jerome Powell addressed the public during a press conference, emphasizing the Fed's focus on the unemployment rate as a key factor behind their recent decision to cut rates. Powell reassured that the job market remains in solid condition, stating that the intention of the policy move was to maintain this stability. He highlighted the overall strength of the US economy, noting its solid growth, decreasing inflation, and strong labor market.
Despite the positive outlook, Powell acknowledged signs of a weakening labor market and a slowdown in hiring, cautioning that these trends need to be monitored closely. He explained that the US has essentially reached 'maximum employment,' indicating that there are limited additional individuals available for hiring.
In its economic projections, the Fed anticipated the unemployment rate to increase to 4.4% but to remain at that level. Powell's remarks underscored the Fed's commitment to sustaining the current economic conditions and ensuring the stability of the labor market.
