US economy no longer overheated, Fed's Powell tells Congress
SUMMARY
Federal Reserve Chair Jerome Powell stated that the U.S. job market has cooled from its pandemic extremes and is now balanced, indicating the economy is no longer overheated. Speaking to Congress, Powell suggested the case for interest rate cuts is strengthening, emphasizing the Fed's need to consider both inflation and other economic factors. While refraining from specifying future rate actions, Powell highlighted the importance of economic data in guiding decisions. With the upcoming presidential election, Powell faced questions from both parties regarding the impact of interest rate decisions on the job market and inflation. Senator Kevin Cramer stressed the importance of central bank independence amidst political pressures.
