Federal Reserve Chairman Powell says the Fed has gained confidence that inflation has cooled down in the second quarter

US Federal Reserve (Fed) Chairman Powell stated at an event hosted by the Washington DC Economic Club on Monday that “the US economy has actually been doing surprisingly well for the past 2 or 3 years.”

Chairman Powell pointed out that the labor market is no longer tight compared to the end of 2019.

“Confidence (that the inflation rate has declined) was not obtained in the first quarter. However, in the second quarter, inflation data further strengthened the confidence of senior Fed officials.

Chairman Powell said he “does not intend to send a signal” to take any action at specific meetings.

The Federal Reserve actively raised interest rates from around zero to 5.25% to 5.50% over 2022 and 2023, and the target range for federal funds interest rates remained at this level for almost 1 year.

Regarding the shooting incident at the Trump rally on Saturday, Chairman Powell said it was a “very sad day” for the United States and that he is grateful that former President Donald Trump was not seriously injured.

Prior to this, Goldman Sachs chief economist Jan Hatzius indicated the basis for the Fed to lower the base interest rate at the July 30-31 meeting at the earliest.