Summary of Powell's Jackson Hole speech

August 24, 2024, 12:05 AM GMT+9

Federal Reserve Board (FRB) Chairman Powell delivered a speech at the US Annual Economic Symposium (Jackson Hole Conference) on the 23rd.
The summary of the speech is as follows:
* It's time for policy adjustments.
* We neither welcome nor seek further cooling of the labor market.
* As we continue to progress towards price stability, we will do everything possible to support a strong labor market.
* At the current level of policy interest rates, there is sufficient room to address risks such as further undesirable weakness in the labor market.
* The timing and pace of rate cuts depend on data, future outlook, and balancing risks.
I have become more convinced that we are on a sustainable path towards returning the inflation rate to 2%.

The risk of inflation rising above expectations has receded, while the downside risks to employment have increased.
The risk balance towards the responsibilities (handled by the FRB) has shifted.
The inflation rate has decreased significantly and is now quite close to the target.
The cooling of the labor market is evident, and it is no longer in an overheated state.
We have made quite a progress towards the goal of price stability without causing a rapid increase in the unemployment rate.