Fed Chair Powell (post-meeting statement) says economy is expanding at a solid pace, inflation remains somewhat elevated; policy stance remains appropriate

• Will remain attentive to risks on both sides of the mandate
• Notes Middle East uncertainty; too soon to note duration and effects on economy
• Rate cuts from last year brings rates to plausible estimate of neutral
• Well positioned to determine future rate adjustments
• Decisions will be made on a meeting by meeting basis

• Economy is expanding at a solid pace, inflation remains somewhat elevated; policy stance remains appropriate
• Consumer spending is resilient

• Job gains have remained low
• Labour demand has softened

• Estimates Feb PCE at 2.8% Y/Y, and core at 3.0%, largely reflect inflation from the Goods sector, boosted by tariffs
• Inflation expectations have risen in recent weeks, likely due to Middle East events
• Long-term expectations are consistent with 2% goal
• Near-term higher energy prices will push up overall inflation

• Housing sector activity is weak

Fed Chair Powell's remarks indicate the economy is moving solidly, yet inflation remains a concern, suggesting no immediate changes to the monetary policy. The emphasis on a meeting-by-meeting assessment of rate adjustments reflects a cautious, data-dependent approach amid geopolitical uncertainties, particularly from the Middle East. This balance hints at a stable outlook for rates, but inflation pressures could create future tension, impacting the dollar and broader market sentiments.