Federal Reserve Chairperson Jerome Powell: U.S. economic activity is expanding steadily, labor market is stable

Federal Reserve Chairperson Jerome Powell said recent indicators suggest that economic activity continues to expand at a solid pace. GDP grew by 2.5% in 2024, buoyed by consumer spending elasticity. Investment in equipment and intangible assets appeared to decline in the fourth quarter, but overall performance was solid throughout the year. Activity in the housing sector appears to have stabilized after a weak mid-year last year. On the labour market front, conditions remain solid and appear to have stabilised. Over the past four months, job creation averaged 189,000 per month. Following an earlier rise, the unemployment rate has held steady since the middle of last year, remaining low at 4% in January. Nominal wage growth has slowed over the past year and the gap between jobs and workers has narrowed. Overall, a broad range of indicators suggests that labour market conditions, which are not a source of significant inflationary pressure, are broadly in equilibrium.