Powell: "Maintain easing monetary policy... Almost reached inflation target"

Following the recent FOMC meeting and press conference, Federal Reserve Chair Jerome Powell clearly stated that the Fed’s interest rate policy has become significantly more flexible. Powell emphasized, “The medium- to long-term interest rate trajectory is on the desired path, and the current policy stance is much less restrictive than before.” This suggests that the Fed has shifted its policy focus from inflation containment to supporting economic growth.

Policy Easing Demonstrated by Concrete Results

The key achievement highlighted by Powell is the rapid easing of inflation. His statement that “inflation is very close to the 2% target” indicates that the goal of price stability is nearing completion. At the same time, consumer spending remains resilient, and economic activity continues to expand at a solid pace. Powell assessed, “The overall U.S. economy is showing positive results,” signaling that policy easing is not burdening the economy.

Future Economic Outlook

Based on internal Fed discussions, Powell also presented a medium-term economic outlook worth noting. Fed officials predict that the U.S. GDP growth rate will remain in the mid-2% range over the next few years. This reflects confidence that concerns over low growth will not materialize and that stable growth is achievable without a slowdown. Powell’s outlook is based on the successful functioning of the current inflation targeting policy and the belief that the Fed’s policy easing is appropriate at this timing.