Fed Chair Powell (post-meeting statement) says US economy is on a firm footing

• Economy has been expanding at a solid pace
• Job gains have remained low
• Consumer spending has been resilient
• Inflation remains somewhat elevated
• Current stance of policy is appropriate
• Activity in the housing sector has remained weak
• Govt shutdown effects should be reversed this quarter
• Last year's cuts leave policy stance 'appropriate' to achieve goals
• December PCE probably rose 3.0%
• Reiterates policy rate is in the range of neutral
• Decisions will be made on a meeting by meeting basis
• Policy is well set for further adjustments based on incoming data and balance of risks

Fed Chair Powell's statement indicates a balanced outlook, describing the US economy as firm but acknowledging persistent inflation. The mixed signals—solid expansion juxtaposed with low job gains and weak housing—suggest a cautious approach to future rate adjustments, emphasizing a meeting-by-meeting analysis. This suggests ongoing volatility in both the FX and fixed income markets as participants digest these developments.