Fed Chair Powell: Economy's not performing as if restrictive policy is holding it back

Monetary Policy Stance - The Federal Reserve decided to maintain the current policy rate, characterizing it as "modestly restrictive" [2] - The committee believes the economy is not being inappropriately held back by the current modestly restrictive policy [3] - The Federal Reserve has made no pre-decisions regarding potential rate adjustments in September [5] Economic Indicators - Inflation is running slightly above 2%, even when excluding tariff effects [2] - The labor market is solid, with historically low unemployment rates [2] - Financial conditions are accommodative [2] Future Considerations - Downside risks to the labor market exist [3] - The Federal Reserve will receive two rounds of jobs and inflation data before the September meeting to inform their assessment of risks and the appropriate federal funds rate [4][5]