Fed Chair Powell: Labor market is 'quite solid' it's the best data we have on the economy

Economic Activity & Demand - Final sales to private domestic purchasers slowed to a 12% gain in Q2 from 19% in Q1, suggesting softening underlying demand [1] - First half profit domestic final purchases were 16%, while GDP was 12% for the same period [3] - GDP is considered bumpy quarter to quarter and often gets revised [3] Labor Market - The unemployment rate is at 41% [4] - Wages are at a healthy level, moving closer to long-run sustainable levels consistent with productivity and 2% inflation [4] - The labor market is still quite solid [4] Inflation - Headline inflation was 21% and core inflation was 25% [2] - Inflation is above target, even ignoring tariffs [5] Monetary Policy - The speaker is trying to do the right thing in a challenging situation, being pulled in two directions [5] - At some point, if risks are equally balanced, a neutral policy stance would be desirable, which is not the case currently [6] - The speaker is not committing to a rate cut in September and will need to see more data on inflation and employment [2][6] - Judgments will be based on all data and a balance of risks analysis [6]