U.S. Economic Signals: Labor Market Stabilizes and Inflation Eases

Powell Sends Positive Economic Signals

Federal Reserve Chair Powell recently indicated that the U.S. economy is showing signs of labor market stabilization after a period of slowdown. Unemployment rates have leveled off, suggesting underlying economic resilience.

Consumer Spending and Business Investment on the Rise

Consumer spending remains strong, and business investment continues to grow, reinforcing expectations of economic recovery.

Inflation Easing Continues

Long-term inflation expectations align with the Fed's targets, with ongoing easing in service-sector price pressures. Data suggests core PCE inflation may remain around 3% in December.

Monetary Policy Will Remain Flexible

Powell emphasized that monetary policy will not follow a fixed path, with decisions made at each meeting based on the latest data.

Impact of Government Shutdown Seen as Temporary

Regarding potential effects from the government shutdown, Powell believes these will be corrected within the quarter and won't impose lasting pressure on the overall economy.