On March 7, Fed Chair Jerome H. Powell delivered his prepared remarks at an event regarding the current economic outlook and U.S. monetary policy. Powell highlighted, despite any uncertainty, the U.S. economy was performing well with a solid labor market and inflation moving closer towards the Fed’s 2 percent target. Powell noted the Trump Administration’s significant policy changes in trade, immigration, fiscal policy, and regulation introduced uncertainty and stated the Fed is prepared to adjust its monetary policy stance based on economic developments. Powell stated this included maintaining “restraint” if inflation does not improve or, alternatively, easing policy if the labor market weakens unexpectedly. Powell concluded by mentioning the Fed’s second five-year review of the monetary policy framework. The review process will involve public outreach and a research conference and is expected to conclude by late summer.
