Fed Chair Powell assesses inflation

When asked about the market impact of the assassination attempt on former US President Donald Trump, Powell replied, "It's a very sad day for our country." 

"I CONDEMN IT IN THE STRONGEST POSSIBLE TERMS"

Powell said, "Political violence has no place in our society and I condemn it in the strongest possible terms." 

Answering questions regarding monetary policy, Powell explained that the US economy has performed quite well over the last few years. 

Powell stated that they did not see more progress on the inflation front in the first quarter, but that some more progress was made in the second quarter. 

Pointing out that the last three inflation data points have been good, Powell said, "We have said that we would not think it appropriate to begin loosening policy until we have gained greater confidence that inflation is moving sustainably toward 2 percent.

I would say that we didn't gain any greater confidence in the first quarter, but the three readings in the second quarter, including the one from last week, do add somewhat to confidence." 

GAVE NO INFORMATION ON TIMING 

Powell indicated that the bank could respond if an unexpected weakening in the labor market were to be seen. 

When asked about market pricing regarding the possibility of the Fed making its first interest rate cut in September, Powell said, "I'm not going to be giving any signals one way or the other about any particular meeting." 

Reiterating that they will make their decisions meeting by meeting, Powell also emphasized that these decisions will be data-dependent. 

When asked about views that the Fed would not want to lower interest rates due to criticisms that it is favoring one side ahead of the upcoming presidential elections in the US, Powell noted that they will make their decisions based on incoming data, the evolving outlook, and the balance of risks, and that they do not take political considerations into account.