Federal Reserve Inflation Statement

The Chairman of the Federal Reserve (Fed), Jerome Powell, made a statement.

“September inflation data continued its downward trend but was less encouraging,” said Fed Chairman Powell, continuing his words as follows:

*Many indicators show that the labor market remains tight but is gradually cooling.

“CAN BE TIGHTER”

*Additional evidence of above-trend growth or continued labor market tightness may justify further tightening of monetary policy.

*New and old uncertainties complicate our task of balancing the risk of tightening monetary policy too much with the risk of tightening it too little.

*The economy does not appear to be struggling at current levels of official interest rates; It is difficult to predict where the adjustment will end.

*I believe that high bond interest rates are not due to high inflation expectations or expected interest rate increases. High bond interest rates tighten financial conditions.