Federal Reserve Chair Jerome Powell has indicated that the United States has not yet achieved a 'soft landing', defined as a scenario where the economy slows enough to curb inflation without causing a recession, stating that there is still a significant way to go. During a press conference, Powell emphasized that while the labor market shows strength and growth is solid to strong, core inflation remains above the target on a 12-month basis. He also mentioned that the Fed is not declaring victory over inflation and is not looking for a weaker labor market, but would consider cutting rates if there was a sign of weakening in the employment sector. Powell described the current economic situation as 'a good economy' with a healthy labor market, suggesting that the Fed can be cautious with the timing of any potential rate cuts.
Fed Chair Powell: "This is a good situation. Let's be honest, this is a good economy." #FOMC https://t.co/MNjObdCSBs
FOMC Presser: Question: If you do not want to say soft landing achieved, would you say hard landing avoided? Powell: I would say this, growth is solid to strong, labor market indicates strength, and we've seen inflation come down. This is a good economy.
Powell: “We have a ways to go” before it’s clear a soft landing has been achieved.
*POWELL: WE THINK WE STILL HAVE A WAYS TO GO TO A SOFT LANDING 😂 @SecYellen https://t.co/j4tHWAHM1B
FOMC Presser: Question: Do you think we achieved a soft landing yet? Powell: I would not say we achieved a soft landing yet. We have ways to go.
**NEWS: Fed Chair Powell says US has not achieved a "soft landing" yet** I wouldn’t say we’ve achieved that," Powell says, adding "We have a ways to go. Core inflation is still well above target on a 12-month basis" "We’re not declaring victory. We think we have a ways to go." https://t.co/8pMC32CraX
*POWELL: WE THINK WE STILL HAVE A WAYS TO GO TOWARD SOFT LANDING
Powell on soft landing: "I wouldn't say we've achieved that, and I think we have a ways to go."
🔴 FED'S POWELL: IN THE BASE CASE, WHERE THE ECONOMY IS HEALTHY WITH A STRONG LABOR MARKET, WE CAN BE CAREFUL AS WE THINK ABOUT RATE CUT TIMING.
🔴 FED'S POWELL: WE ARE NOT LOOKING FOR A SLIDE IN EMPLOYMENT, BUT WOULD CUT RATES IF WE SAW A WEAKENING.
Fed's Powell: We Are Not Looking For A Slide In Employment, But Would Cut Rates If We Saw A Weakening
POWELL: WE ARE NOT LOOKING FOR A WEAKER LABOR MARKET The Fed is extremely keen on realizing a soft landing, and it will cut rates whenever deemed necessary to 'protect' that soft landing.
Powell: We are not looking for a weaker labor market ARFKM this is exactly what they have been telling us