Fed Chair Powell: Labor market is still imbalanced

Economic Activity & GDP - GDP and Private Domestic Final Purchases (PDFP) numbers aligned with expectations [1] - Economic activity data, including GDP and PDFP, slowed to slightly above 1%, specifically 1.2% for GDP in the first half of the year, compared to 25% the previous year, indicating a slowdown [2] Labor Market - Labor market remains balanced across various statistics, including quits, job openings, and the unemployment rate, similar to levels from a year prior [3] - Job creation is slowing, but so is the supply of workers, maintaining a labor market balance, though this balance is due to declines in both supply and demand, suggesting downside risk [4] - The primary focus is on inflation and maximum employment, with the labor market appearing solid [5] - Downside risks to the labor market are apparent [5] - Equilibrium job growth should be assessed by monitoring the unemployment rate, as both demand and supply for workers are decreasing in tandem [6] Monetary Policy & Inflation - Weakness in interest-sensitive sectors like residential investment and commercial structures raises questions about whether monetary policy is too restrictive [1] - Inflation remains above target, even when excluding tariff effects, justifying the current monetary policy stance [5]