Fed Chair Powell (Q&A) says growth upgrade likely due to growing confidence in productivity

• Says there is tensions between goals - upward pressure on prices, downward pressure on growth
• Unemployment is close to long run normal, and inflation is 1% above target, says he would reserve the phrase 'stagflation' for other cases, but this is not stagflation

Powell's remarks suggest a nuanced outlook for the economy, indicating a potential growth upgrade tied to productivity gains, which could influence market expectations around interest rates. He highlighted a delicate balance between inflationary pressures and growth concerns, steering clear of the stagflation label despite current inflation being above target. This could lead to a more hawkish interpretation for monetary policy, especially as confidence in growth could warrant tighter action from the Fed.