November 7, 2024
Jerome H. Powell
November 7, 2024 FOMC Press Conference
- The chair said the economy is strong overall and has made significant progress toward the Fed's goals over the past two years.
- The chair said inflation has eased substantially from a peak of 7 percent to 2.1 percent as of September.
- The chair said payroll job gains averaged 104,000 per month over the past three months, and the figure would have been somewhat higher without the effects of labor strikes and hurricanes in October.
- The chair said the unemployment rate edged down over the past three months to 4.1 percent in October, notably higher than a year ago but still low.
- The chair said the recent rise in long-term bond yields appears not principally about higher inflation expectations but about a sense of stronger growth and less downside risk, and that it's too early to say where they settle.
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. The economy is strong overall and has made significant progress toward our goals over the past two years. The labor market has cooled from its formerly overheated state and remains solid. Inflation has eased substantially from a peak of 7 percent to 2.1 percent as of September. We are committed to maintaining our economy’s strength by supporting maximum employment and returning inflation to our 2 percent goal.
Today, the FOMC decided to take another step in reducing the degree of policy restraint by lowering our policy interest rate by ¼ percentage point. We continue to be confident that, with an appropriate recalibration of our policy stance, strength in the economy and the labor market can be maintained, with inflation moving sustainably down to 2 percent. We also decided to continue to reduce our securities holdings. I’ll 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 rose at an annual rate of 2.8 percent in the third quarter, about the same pace as in the second quarter. Growth of consumer spending has remained resilient, and investment in equipment and intangibles has strengthened. In contrast, activity in the housing sector has been weak. Overall, improving supply conditions have supported the strong performance of the U.S. economy over the past year.