Federal Reserve Chairman Jerome Powell has indicated a ‘clear improvement’ in the anticipated performance of the US economy for the coming year. Speaking to reporters after the latest policy meeting, Powell stated that the economic outlook has markedly improved since the previous meeting. He expects this improvement to positively influence labour demand and employment rates over time.
During the press conference, Powell largely refrained from commenting on the significant political issues surrounding the meeting, including the Justice Department’s criminal investigation into his conduct. The DOJ had previously issued subpoenas to the Federal Reserve, prompting a strong response from Powell, who accused the administration of using the investigation as a form of intimidation.
When questioned about his intentions regarding his position on the Fed’s Board of Governors after his term as chair concludes in May, Powell stated that he has not yet made a decision. He also declined to provide a timeline for when he might make that decision. Powell did, however, address his attendance at a recent Supreme Court hearing concerning President Trump’s attempt to remove Fed Governor Lisa Cook.
Powell emphasized the importance of the case, calling it possibly the most significant legal matter in the Fed’s 113-year history. He felt it was necessary to attend, considering the case’s implications for the Federal Reserve’s independence and governance.
