Jerome Powell emphasized the need for policy adjustments as inflation shows signs of returning to a sustainable 2%, with a notably cooled labor market.
Powell noted that the global inflation crisis post-2022 was unprecedented since the 1970s, largely driven by external factors like the Ukraine invasion.
He reflected on the pandemic's impact on the labor market, stating it didn't return to pre-pandemic trends until mid-2023, requiring strong Fed action.
Powell acknowledged the experience with inflation, describing the shift from the 'transitory inflation' theory, highlighting the journey toward more stable economic conditions.
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