Federal Reserve Barkin: Positive about 2025 expectations, no need to take previous restrictive measures again

Odaily Planet Daily News According to the prepared speech by the Federal Reserve’s Powell, he is positive about the basic expectations for 2025: “I expect the economy’s rise potential to be greater than the downside.” He added that the expectation of economic expansion may be the reason for the recent rebound in business optimism. Part of the reason he is optimistic about the economic outlook is his belief that the rising momentum of consumer spending may continue to keep the economy healthy in the coming months. Powell said, “Due to the high business optimism and the unlikely continuation of strong rise in labor supply, the current labor market balance is more likely to move towards recruitment rather than layoffs.” He also predicted that consumers who have recently become more cost-conscious will pressure companies to limit price pumps, which should continue to push down inflation. However, he pointed out that the inflation rate has not yet returned to the Federal Reserve’s 2% target: “We still have more work to do, but we believe that restrictive measures are not necessary as before to complete this task.” (Jinshi)