Inflation has dwindled from a four-decade high of 9.1% in June 2022 to 3.7% in August.
The policymakers predicted that inflation would fall to about 2.6% by the end of 2024, with only a small rise in the unemployment rate.īut given its confidence in the economy’s resilience, the Fed also signaled that it expects to keep its benchmark rate higher for longer, potentially raising it once more this year and keeping it above 5% well into 2024. At their most recent meeting two weeks ago, Fed officials signaled confidence about a so-called “soft landing,” in which inflation would fall back to their 2% target without a deep recession. Powell’s visit occurred as the Fed is monitoring the economy for signs that its streak of rate increases are having their desired effect and that inflation is continuing to cool.
Heasley said she is paying a much higher rate now on her credit cards, which she sometimes uses to fund her business. When asked before his visit what she would most want to tell Powell, Heasley said, “Lower interest rates.” During his tour of downtown York, Powell also met Jennifer Heasley, owner of Sweet Mama’s Mambo Sauce, who makes a barbecue-style sauce and owns a food stall in the York Central Market.