(Reuters) – The slowdown in U.S. PCE inflation, in line with expectations, is a welcome surprise as the Federal Reserve is no longer just concerned with inflation, Fed Chairman Jerome said on Friday Powell.
“My first thought was that PCE inflation was in line with expectations, which is a good thing,” said Jerome Powell, speaking from the San Francisco Fed.
As inflation continues to decline, it is no longer relevant to only take this indicator into account.
“We are now thinking about both the risks to employment and inflation,” said Jerome Powell.
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With the presidential election approaching, some observers are concerned about the impact of the electoral calendar on the institution.
“We will not make decisions based on the political calendar,” dismissed Jerome Powell, recalling that the central bank was an independent institution.
The central banker, however, warned of the significant American budget deficit, while the debt represents 112% of GDP according to the ECB, close to its record reached at the start of 2021.
“We are not on a sustainable fiscal trajectory. The sooner we find a sustainable trajectory, the better,” said the Fed president.
(Written by Corentin Chappron, edited by Jean-Stéphane Brosse)
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