Powell: ‘No reason’ to think economy is close to recession

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Federal Reserve Chair Jerome Powell stated that there is 'no reason' to believe that the U.S. economy is close to a recession. Powell made this statement at a conference in San Francisco, emphasizing that the economy is in a good place and growth is strong. The U.S. economy has defied expectations over the past year and a half, avoiding a recession that many economists predicted. Inflation has come down significantly without causing a major economic downturn, and the labor market has remained resilient despite interest rate hikes by the Fed. The unemployment rate is at 3.9 percent, and the economy added 275,000 jobs in February. The Fed has opted to hold its baseline interest rate steady and Powell has stated that the central bank needs to see more positive data before considering rate cuts. Powell also mentioned that inflation is still too high and the path forward is uncertain. However, he expects inflation to gradually come down on a sometimes bumpy path. The latest data on inflation, including the consumer price index (CPI) and the personal consumption expenditures (PCE) price index, are in line with the Fed's expectations.

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https://thehill.com/business/4564032-powell-no-reason-to-think-economy-is-close-to-recession/