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Powell opening statement: The economy is strong

January 29, 2025 at 07:31PM

Inflation has moved much closer to our longer-run goal, though it remains somewhat elevated

2024 GDP looks to have risen above 2%

Investment in equipment appears to have slowed late in the year but was solid in 2024

Labor market conditions remain solid

Unemployment has stabilized, remains low

Conditions in the labor market are broadly in balance, not a significant source of pressure

Total PCE rose 2.6% in 12 months to Dec, and core 2.8%

Risks to achieving our goals are roughly in balance

We do not need to be in a hurry to adjust policy stance

Policy is well-positioned

Review of policy framework will wrap up by late summer

The comment on not being in a hurry is a key one and suggests a low likelihood of a move in March (the market was pricing in just at 22% chance of a cut).

This article was written by Adam Button at www.forexlive.com.

Powell opening statement: The economy is strong