Fed Chair Jerome Powell, speaking at an event in Amsterdam, characterized the recent US economic data as presenting a “good picture.” He noted that the labor market is showing signs of “gradual cooling” and moving toward “better balance.” However, he pointed out that disinflation in the first quarter was marked by a “lack of further progress.”
Addressing today’s US PPI data, Powell described it as more “mixed” than “hot,” explaining that while the April figures were higher than expected, previous data had been revised lower.
Powell reiterated that he does not anticipate the central bank’s next move on interest rates to be an increase.
