Fed's only goal is to do a good job for the public it serves, says Jerome Powell

Monetary Policy and Labor Market - The current economic situation requires a careful balance between monetary policy responses to inflation and employment, with a shift from a tight to a more neutral stance as conditions stabilize [1][2][3] - Recent data indicates a significant softening in the labor market, suggesting that risks related to inflation and employment are becoming more balanced [3][6] - The break-even employment growth rate has decreased considerably, with estimates potentially falling below zero, indicating challenges in the labor market [4][5][6] Economic Indicators and Data Monitoring - The Federal Reserve is closely monitoring various labor market indicators, including state-level unemployment claims and private sector employment data, to gauge economic conditions [15][16] - The absence of timely government data could complicate the assessment of economic activity and labor market conditions, particularly for upcoming reports [17][20] - The Fed acknowledges the importance of alternative data sources but emphasizes that they should supplement, not replace, government data [16][17] Impact of AI and Technological Changes - The Federal Reserve is actively researching the implications of generative AI on productivity, labor markets, and economic stability, recognizing the early stages of understanding its full impact [21][23][24] - There are concerns about potential job losses and the need for greater education and skills to adapt to technological advancements, which the Fed cannot directly address [26][27] Interest Rates and Monetary Conditions - Current monetary conditions indicate abundant reserves, although there are signs of tightening in money market conditions, particularly in repo rates [29][30] - The Fed is committed to monitoring these conditions closely to ensure effective monetary policy implementation [29][30] Independence and Policy Decision-Making - The Federal Reserve emphasizes its commitment to maintaining independence in monetary policy decisions, focusing on data-driven approaches to serve the public interest [32][33] - Healthy debates within the FOMC are seen as essential for making informed decisions, especially in complex economic situations [36][39]