Fed Chair Powell: Strong Economy and Inflation Decline, Rates Cut by 50 Basis Points

**Federal Reserve Chair Powell Signals Economic Resilience Amid Inflation Decline**

In a recent statement, Federal Reserve Chair Jerome Powell addressed the current state of the U.S. economy, highlighting its strength as inflation settles from its peak to around 2%. Despite some cooling in the labor market, Powell noted that inflation, while reduced, remains above the Fed’s target. However, long-term inflation expectations are currently under control, indicating that future financial strategies may remain stable.

Consumer spending continues to show resilience, which is a positive sign for the economy. Nevertheless, residential investment has seen a dip in the second quarter, raising questions about the housing market’s trajectory. Despite these fluctuations, GDP growth is expected to remain robust.

Powell acknowledged that the labor market is now less tight compared to pre-pandemic levels. He stated that as inflation approaches targets and risks diminish, the Federal Reserve has decided to lower interest rates by 50 basis points. He emphasized that monetary policy decisions will be reassessed at every meeting, ensuring a responsive approach to evolving economic conditions.