The U.S. Economy and Considerations for Monetary Policy

Detailed summary

Good afternoon. It is a pleasure to join you today at the Council on Foreign Relations to discuss my outlook for the U.S. economy. 1 Economic growth has ...

Official websites use .govA .gov website belongs to an official government organization in the United States.

Secure .gov websites use HTTPSA lock (LockLocked padlock icon) or https:// means you've safely connected to the .gov website. Share sensitive information only on official, secure websites.

At the C. Peter McColough Series on International Economics Council on Foreign Relations, Washington, D.C.

Vice Chair for Supervision Bowman presented identical remarks at a subsequent event held by Unleash Prosperity Now on the same day.

Good afternoon. It is a pleasure to join you today at the Council on Foreign Relations to discuss my outlook for the U.S. economy.1

Economic growth has gained momentum this year, driven by robust investment demand and solid consumer spending, and the labor market now appears to have stabilized. These outcomes suggest that the policy rate cuts toward the end of last year helped to address some labor market weakness. We are experiencing rapid technological change and ongoing geopolitical tensions, while inflation pressures have persisted for longer than I had hoped and have shown recent signs of broadening. Despite these challenges, increased investment in and use of artificial intelligence (AI), or super intelligence, are boosting economic growth and productivity and American families appear to be resilient.

The Federal Reserve's monetary policy goals are to achieve maximum employment and price stability. While the labor market has improved more than I expected this year, our progress on lowering inflation has disappointed. Therefore, bringing inflation down remains a priority. I am also monitoring expectations about AI and energy prices, and how they influence the risks to achieving our mandates. Consistent with my views following our September FOMC meeting, I continue to focus on interpreting the underlying trends in the economy and the evolution of financial conditions.2

In my remarks today, I will review our most recent FOMC policy meeting…

Up…

Opening of the article, excerpted from Federal Reserve. To read the rest, open the article on the publisher's site.