Fed Chair: Economy and labor market stable

The head of the U.S. Federal Reserve, Kevin Warch, emphasized that the central bank remains committed to its fight against inflation, with a firm goal of bringing inflation back down to 2% only, denying any flexible or implicit targets above that level. He pointed out that the U.S. economy remains strong, with noticeable resilience and a stable labor market, despite inflation that has become more entrenched after five years. He explained that rapidly eliminating inflation is unrealistic, and that decisions will depend on economic data, noting the rise in Treasury bond yields. He clarified that growth is possible through productivity improvements supported by artificial intelligence, despite the challenges. The 12-member committee maintained interest rates between 3.50% and 3.75%, with 3 members dissenting. Analysts expect rates to be increased again in September, as the focus continues on controlling inflation despite economic challenges.

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