During a conference in San Francisco, Federal Reserve Chair Jerome Powell addressed concerns about a potential recession, stating that the U.S. economy is currently strong and showing no signs of imminent recession. Powell emphasized that the economy is in a good place and there is no reason to believe a recession is looming.
Despite earlier predictions of a recession by many economists in 2022, the U.S. economy has continued to perform well. Inflation has decreased significantly without causing a major economic downturn, with the consumer price index falling from 9.1 percent to 3.2 percent. The labor market has also remained robust despite multiple interest rate hikes by the Fed aimed at controlling inflation.
The economy added 275,000 jobs in February, maintaining an unemployment rate of 3.9 percent, marking the longest sub-4 percent streak since the late 1960s. At its recent meeting, the Fed chose to keep its baseline interest rates steady, with Powell emphasizing the need for more positive economic data before considering rate cuts.
While a separate inflation measure, the personal consumption expenditures price index, saw a slight increase in February, Powell stated that this was within expectations and reiterated the Fed’s belief that inflation will gradually decrease. Overall, the U.S. economy continues to show resilience and strength according to Powell’s statements
