Fed's Powell Highlights Strong U.S. Economy, Expects GDP Growth of 2% Amid Inflation Concerns

Federal Reserve Chairman Jerome Powell provided an update on the U.S. economy, highlighting several key points. Powell noted that the U.S. economy has been performing very well, with strong consumer spending and business investment. He emphasized that the labor market remains strong and is gradually rebalancing, although there are still labor shortages in many industries. Powell acknowledged that inflation in the first quarter was notable for the lack of further progress and expressed lower confidence in inflation moving back down. He mentioned that the Fed did not expect a smooth road on inflation and stressed the need for patience to let policy work. Powell also expects continued GDP growth of 2% or better. Additionally, he noted that the Producer Price Index reading was quite mixed.