Speaking at the European Central Bank's (ECB) annual forum in Sintra, Portugal, the U.S. Federal Reserve's chairman Jerome Powell noted that the U.S. economy is in strong shape. According to him, households and businesses are overall in a strong state, and the labour market is tremendously strong. So, the U.S. economy is well-positioned to withstand monetary policy moves, he added.
However, Powell also acknowledged that the events of the last few months made the Fed's job more challenging, but it is the central bank's job to find price stability even during new forces of inflation. He said that there are pathways to get back to 2% inflation with a strong labor market but they have gotten narrower.