Fed's Powell: I don't see increased slack in labor market, except at the margin

FED'S POWELL Q&A: RATES 'ARE NOT VERY HIGH;' POLICY 'MODESTLY RESTRICTIVE' AND WITHOUT TARIFFS COULD ANTICIPATE MORE PROGRESS; WAITING TO SEE #FOMC #FederalReserve #economy FED'S POWELL: WILL TAKE CONFIDENCE THAT INFLATION IS COMING DOWN; WITHOUT TARIFFS, THAT CONFIDENCE WOULD BE BUILDING || SAYS HARD TO KNOW HOW WE SHOULD REACT UNTIL WE SEE THE SIZE OF THE TARIFF EFFECTS Fed's Powell: The labor market is not crying out for a rate cut. FED'S POWELL: NOT CONCERNED WE CAN'T DO OUR JOBS WITH THE DATA WE HAVE || SAYS HAVING REALLY GOOD DATA IS A HUGE PUBLIC GOOD Powell: Of course, the Fed is watching the Israel-Iran conflict. We possibly will see higher energy prices, but don't generally tend to have lasting effects on inflation.

Fed's Powell: If just look backward at data, you would want rates closer to neutral. But we expect a meaningful amount of inflation in coming months. Fed's Powell: We will make a smarter decision if we wait a couple of months. FED'S POWELL: ECONOMY HAS BEEN RESILIENT, PART OF THAT IS OUR STANCE || SAYS NOT THINKING ABOUT OWN FUTURE AFTER CHAIR TERM ENDS POWELL: SUPPLY AND DEMAND IN LABOR MARKET HAVE KEPT UNEMPLOYMENT RATE IN REASONABLE PLACE Fed's Powell: Compared to September 2024, when we cut rates, inflation forecast for the current year is for higher inflation from tariffs.