Fed Powell:Layoffs, hiring remain low. Rates are now in a plausible range of neutral.

2025-12-10 19:38:00

Fed Powell is giving his opening remarks and says:

• Purchase of shorter-term securities to support effective control of policy rates.
• Consumer spending solid, business fixed investment expanding.
• Housing sector remains week
• effects of the shutdown should be offset by higher growth next quarter from reopening. Layoffs, hiring remain low
• September labor market releases showed unemployment rate edged up, job gains slowed significantly.
• Labor demand has cleared softened.
• Less dynamic, somewhat softer labor market.
• Downside risks and labor market.
• Inflation remained somewhat elevated.
• Little data on inflation have been released since October meeting.
• Readings on inflation are higher as goods inflation has picked up.
• Disinflation continued for services.
• Near-term risk to inflation tilted upside, to employment to the downside.
• There is no risk-free policy path.
• With downside risk to employment having risen, balance of risks shifted.
• Well positioned to determine adjustment to policy rate
• further normalization of last 3 meetings should help stabilize labor market, key pressure down on inflation.
• Policymaker projections are subject to uncertainty, not a plan or decision.
• No preset by meeting basis.
• Rates are now in a plausible range of neutral.
• Committee judges reserve balances have declined to ample levels

This article was written by Greg Michalowski at investinglive.com.