Fed Calls U.S. Best-Performing Major Economy In The World

The United States has recently demonstrated “the best performance of any major economy in the world,” Federal Reserve Chair Jerome Powell stated.

The Fed has shifted its focus from combating inflation to supporting the labor market as inflation has moderated.

His remarks came a week after the Fed cut interest rates for the second consecutive meeting, Agence France-Presse (AFP) reported.

The U.S. central bank has begun reducing its key lending rates from a two-decade high, shifting its focus from combating inflation to supporting the labor market as inflation has moderated.

Years of inflation have driven consumer prices up by more than 20% since the onset of the COVID-19 pandemic, fueling widespread public frustration. However, Powell emphasized that current economic indicators are encouraging.

He highlighted that inflation is declining toward the Fed’s long-term 2% target, the labor market remains “solid,” and economic growth is resilient.

“The recent performance of our economy has been remarkably good, by far the best of any major economy in the world,” Powell said.

He also noted that inflation, as measured by the Fed’s preferred gauge, is “running much closer” to the bank’s target, although it has not yet fully reached it.