The Chairman of the Federal Reserve Jerome Powell said on Wednesday that the US economy is not in a recession. He was speaking at the press conference after the FOMC meeting.
According to him, the US economy is having a soft landing for example consumer spending is slightly down. The economy is now on the path to mitigate the inflation. Unemployment is at its lowest levels in 14 years. The rate in the US is now 3,6%, Powell said.
The Central Bank is ready to raise rates also in the next meeting in September if the data is showing that kind of trend. Mr Powell reminded that the Fed is acting meeting by meeting based on data.
According to him, the timeline is 8 weeks and the Fed will follow several key metrics affecting inflation.
The Fed is also reducing its Treasury holdings and agency debts in order to balance the balance sheet. Mr Powell expected this will take 2 – 2,5 years time.
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