July 31, 2024
Jerome H. Powell
July 31, 2024 FOMC Press Conference
- The chair said the economy has made considerable progress toward both goals over the past two years, with inflation easing from a peak of 7 percent to 2.5 percent.
- The chair said GDP growth moderated to 2.1 percent in the first half of the year, down from 3.1 percent last year, while private domestic final purchases grew at a 2.6 percent pace.
- The chair said payroll job gains averaged 177,000 jobs per month in the second quarter, and the unemployment rate moved up to 4.1 percent.
- The chair said the second quarter’s inflation readings have added to confidence, and more good data would further strengthen that confidence.
- The chair said a rate cut could be on the table as soon as the September meeting if the totality of data, evolving outlook, and balance of risks are consistent with rising confidence on inflation and maintaining a solid labor market.
From the opening statement
Press conference
CHAIR POWELL. Good afternoon. My colleagues and I remain squarely focused on achieving our dual-mandate goals of maximum employment and stable prices for the benefit of the American people. Our economy has made considerable progress toward both goals over the past two years. The labor market has come into better balance, and the unemployment rate remains low. Inflation has eased substantially from a peak of 7 percent to 2.5 percent. We are strongly committed to returning inflation to our 2 percent goal in support of a strong economy that benefits everyone.
Today, the FOMC decided to leave our policy interest rate unchanged and to continue to reduce our securities holdings. We are maintaining our restrictive stance of monetary policy in order to keep demand in line with supply and reduce inflationary pressures. We are attentive to risks on both sides of our dual mandate, and I will have more to say about monetary policy after briefly reviewing economic developments.
Recent indicators suggest that economic activity has continued to expand at a solid pace. GDP growth moderated to 2.1 percent in the first half of the year, down from 3.1 percent last year. Private domestic final purchases, or PDFP—which excludes inventory investment, government spending, and net exports and usually sends a clearer signal of underlying demand— grew at a 2.6 percent pace over that same period, the first half. Growth of consumer spending has slowed from last year’s robust pace but remains solid. Investment in equipment and intangibles has picked up from its anemic pace last year. In the housing sector, investment stalled in the second quarter after a strong rise in the first. Improving supply conditions have supported resilient demand and the strong performance of the U.S. economy over the past year.