PANews July 30 news, according to Jin10, Fed Chair Powell held a press conference after the July FOMC meeting. On the interest rate outlook, Powell said that he would not hesitate to act when necessary and appropriate; if inflation remained persistently high, rates could be part of the solution; he would not describe what we did today as a pause, closely watching market pricing but not acting in line with market pricing, inaction is just the beginning of the story, not the end; withdrawal of forward guidance requires a certain transition period. On the inflation outlook, Powell said that thinking we are more tolerant of a slightly higher inflation target is a misreading, the Fed does not have a soft inflation target, the only target is a 2% inflation rate; June’s core CPI data had little impact on the decision; what matters is the inflation trend; the range of inflation data we reference is broader than just PCE data; we have received some encouraging inflation data.
On the economic outlook, Powell said investment is strong, economic output is solid, and AI investment is laying the foundation for future growth; what we are doing is a rigorous review of the economic situation. The labor market is robust and remains stable, and we have done quite well in terms of full employment. On other issues, Powell said he originally wanted to seek an internal debate, and indeed one came about. The dissenting votes did not fully reflect the substance of the discussion, and the decision made received overwhelming support. He has not yet considered the speech at the Jackson Hole symposium. He promised to continue holding press conferences through the end of the year.
