Fed Chair Jerome Powell talks inflation and labor market after leaving rates unchanged

Economic Overview - The US economy is expanding at a solid pace, with consumer spending remaining resilient and business fixed investment continuing to grow, although the housing sector remains weak [4][10] - The median projection for real GDP growth is 2.4% for this year and 2.3% for next year, which is stronger than previous projections [4] Labor Market - The unemployment rate is currently at 4.4%, showing little change since late last summer, with job gains remaining low due to a decline in labor force growth [5][6] - Labor demand has softened, with indicators such as job openings and nominal wage growth showing little change in recent months [6] Inflation - Inflation has eased from its mid-2022 highs but remains elevated, with total PCE prices rising 2.8% over the past 12 months and core PCE prices rising 3.0% [7][8] - Near-term inflation expectations have increased due to rising oil prices from Middle East supply disruptions, while longer-term expectations remain aligned with the 2% inflation goal [8][10] Monetary Policy - The FOMC decided to keep the policy rate unchanged, viewing the current stance as appropriate for achieving maximum employment and 2% inflation [2][9] - The target range for the federal funds rate is maintained at 3.5% to 3.75%, with projections indicating a potential decrease to 3.4% by the end of this year and 3.1% by the end of next year [12] Future Outlook - The Fed will continue to monitor risks to both sides of its dual mandate and will adjust monetary policy based on incoming data and evolving economic outlook [11][13] - The commitment to achieving maximum employment and stable prices remains a priority for the Fed, with a focus on bringing inflation sustainably to the 2% goal [13][14]