Federal Reserve's Stance on Recession Risk

During the recent FOMC press conference, Federal Reserve Chair Jerome Powell addressed the economic outlook, noting a slight increase in recession probability forecasts. However, Powell reassured that the overall risk remains low, emphasizing the Fed's commitment to closely monitor economic indicators for any signs of downturn.

Inflation Concerns Acknowledged

Powell also touched on the ongoing concern of inflation, recognizing the public's dissatisfaction with rising prices. "People are unhappy, and they are not wrong, that prices went up a lot," Powell stated, highlighting the Fed's awareness of the impact of inflation on consumers.

Current Policy Stance

Despite these concerns, Powell affirmed that the Federal Reserve believes its current policy stance is appropriate, aimed at supporting the economy while keeping an eye on inflation and other economic indicators.