![]() ![]() At our most recent meeting in July, the FOMC raised the target range for the federal funds rate to 2.25 to 2.5 percent, which is in the Summary of Economic Projection's (SEP) range of estimates of where the federal funds rate is projected to settle in the longer run. We are moving our policy stance purposefully to a level that will be sufficiently restrictive to return inflation to 2 percent. While the lower inflation readings for July are welcome, a single month's improvement falls far short of what the Committee will need to see before we are confident that inflation is moving down. Inflation is running well above 2 percent, and high inflation has continued to spread through the economy. The labor market is particularly strong, but it is clearly out of balance, with demand for workers substantially exceeding the supply of available workers. While the latest economic data have been mixed, in my view our economy continues to show strong underlying momentum. economy is clearly slowing from the historically high growth rates of 2021, which reflected the reopening of the economy following the pandemic recession. But a failure to restore price stability would mean far greater pain. These are the unfortunate costs of reducing inflation. While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. Moreover, there will very likely be some softening of labor market conditions. Reducing inflation is likely to require a sustained period of below-trend growth. Restoring price stability will take some time and requires using our tools forcefully to bring demand and supply into better balance. The burdens of high inflation fall heaviest on those who are least able to bear them. In particular, without price stability, we will not achieve a sustained period of strong labor market conditions that benefit all. Without price stability, the economy does not work for anyone. Price stability is the responsibility of the Federal Reserve and serves as the bedrock of our economy. The Federal Open Market Committee's (FOMC) overarching focus right now is to bring inflation back down to our 2 percent goal. Today, my remarks will be shorter, my focus narrower, and my message more direct. Thank you for the opportunity to speak here today.Īt past Jackson Hole conferences, I have discussed broad topics such as the ever-changing structure of the economy and the challenges of conducting monetary policy under high uncertainty. Factors Affecting Reserve Balances - H.4.1.Industrial Production and Capacity Utilization - G.17.Survey of Household Economics and Decisionmaking.Household Debt Service and Financial Obligations Ratios.Financial Accounts of the United States - Z.1.Statistics Reported by Banks and Other Financial Firms in the. ![]() Senior Credit Officer Opinion Survey on Dealer Financing.New Security Issues, State and Local Governments.Senior Loan Officer Opinion Survey on Bank Lending.Charge-Off and Delinquency Rates on Loans and Leases at.Assets and Liabilities of Commercial Banks in the U.S.Aggregate Reserves of Depository Institutions and the.Payments System Policy Advisory Committee.International Standards for Financial Market.Supervision & Oversight of Financial Market.Sponsorship for Priority Telecommunication Servicesįinancial Market Utilities & Infrastructures.Federal Reserve's Key Policies for the Provision of Financial.Regulation HH (Financial Market Utilities).Regulation II (Debit Card Interchange Fees and Routing).Regulation CC (Availability of Funds and Collection of.Securities Underwriting & Dealing Subsidiaries.Enforcement Actions & Legal Developments.Federal Financial Institutions Examination Council (FFIEC)īanking Applications & Legal Developments.Federal Reserve Supervision and Regulation Report.Community & Regional Financial Institutions. ![]()
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