Powell assures US economy stable, inflation control progresses

Shafaq News/ On Tuesday, US Federal Reserve Chair Jerome Powell confirmed that the US economy will not face a recession or major economic turmoil.

Speaking at the Economic Club of Washington, Powell said he thinks a “hard landing” for the US economy was not “a likely scenario.”

Powell remarked that the second-quarter US inflation readings "add somewhat to confidence" in a sustainable return to the Fed's target pace of price increases. His comments suggested that the possibility of interest rate cuts may be on the horizon.

"In the second quarter, actually, we did make some more progress on taming inflation,” Powell said, adding, "We've had three better readings, and if you average them, that's a pretty good place."

The second-quarter consumer price index, excluding volatile food and energy prices, rose 2.1 percent year-on-year, typically exceeding the US Federal Reserve's preferred personal consumption expenditures price index.

Powell stated he had no intention of signaling when the Fed might begin cutting interest rates. The central bank's next policy meeting is scheduled for the end of July.