Federal Reserve Chair Jerome Powell said the U.S. economy remains in a "solid position," with unemployment low and a wide range of indicators pointing to a labour market at or near maximum employment. Inflation, however, is still running "somewhat above" the central bank’s 2% target. The Fed expects the headline personal consumption expenditures index to rise 2.5% and the core gauge 2.7% in the 12 months through June, Powell added, noting that longer-run inflation expectations remain broadly anchored. Powell characterised the stance of monetary policy as "modestly restrictive" and said it leaves the Federal Open Market Committee well placed to adjust promptly to economic developments. He highlighted continued uncertainty around the outlook, citing slower consumer spending and persistent weakness in housing, but added that current settings do not appear to be holding back growth inappropriately. The Fed’s broad policy review is on track to be completed by late summer, he said. Looking ahead, Powell stressed that the decision at the September meeting will be guided by incoming data, and that the committee has made no determination about potential rate changes. "We are still a ways away from seeing where things settle," he said, underscoring the central bank’s readiness to respond if inflation or growth diverge from its projections.