Available indicators suggest that economic activity has been expanding at a moderate pace. Job gains have slowed this year, and the unemployment rate has edged up through September. More recent indicators are consistent with these developments. Inflation has moved up since earlier in the year and remains somewhat elevated.The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is atte ...

Fed Independence & Political Influence - The removal of a Fed governor based on accusations poses a significant threat to the Fed's independence [1][3] - Such a removal could set a precedent, allowing political influence to sway interest rate decisions away from the Fed's dual mandate [3][6] - Administrations typically favor lower interest rates, potentially leading to policies misaligned with maximum employment and price stability [6] Market Reaction & Economic Implications - Markets may not immediately react to the issue but could respond negatively if a governor is removed from the FOMC [4][6] - Political influence on interest rates could introduce inflation and risk premiums in the long-term bond market [7] - A Fed perceived as politically influenced could lead to higher premiums on long bond yields, counteracting the goal of lower long-term interest rates [7]

Fed Independence & Market Stability - Markets rely on the Fed's independence and commitment to price stability and maximum employment for assessing the US economy's soundness and investment security [1] - Presidential threats to remove a Fed chair to lower interest rates for government financing, rather than price stability, are disconcerting to markets [1] Monetary Policy & Inflation Risk - History shows that when pressure drives monetary policy, high inflation is the inevitable consequence [1]

Monetary Policy & Economic Goals - The Fed is mandated to pursue price stability and maximum employment [1] - Fed officials should make fact-based judgments [1] - The Fed aims to stay out of politics and avoid short-term political pressures [2] - The Fed strives to behave in a nonpartisan way [2] Inflation & Labor Market - US inflation is coming down and approaching the Fed's 2% goal [3] - The US unemployment rate is at 4.1% [3] - The post-pandemic surge in price pressures was experienced by the US and other developed countries [3] Fed's Independence & Track Record - The Fed has generally maintained independence over decades [2] - The Fed's track record has been successful [2]

Economic Outlook - The industry anticipates 2025 as a pivotal year with significant economic changes, particularly in trade [1] - The industry aims to successfully challenge some significant economic changes in 2025 [1] Central Bank Focus - The central bank is focused on achieving maximum employment, price stability, and financial stability [2] - The central bank is using its tools to achieve the goals set by Congress [2]

Monetary Policy Goals - The Fed aims to achieve price stability, maximum employment, and financial stability [1] - The primary concern is whether the current path will lead to achieving these goals [1] Leadership Transition - The current chair has a little more than 10 months left in their term [1] - The goal is to hand over a healthy economy to the successor [1] Future Plans - No information is available regarding the chair's plans after the term expires [1]

The Federal Reserve remains squarely focused on achieving our dual mandate goals of maximum employment and stable prices for the benefit of the American people. Despite elevated uncertainty, the economy is in a solid position. The unemployment rate remains low and the labor market is at or near maximum employment.Inflation has come down a great deal but has been running somewhat above our 2% longer run objective. We are attentive to the risks on both sides of our dual mandate. I will review the current econ ...