US Stock Market | US economy shows resilience despite energy shock, growth seen above 2%: Powell
The United States economy continues to demonstrate resilience despite the recent energy price shock linked to geopolitical tensions involving Iran, Federal Reserve Chair Jerome Powell said on Wednesday, as per a Reuters report.
By Anupam Nagar, ETMarkets.com |
AP
The United States economy continues to demonstrate resilience despite the recent energy price shock linked to geopolitical tensions involving Iran, Federal Reserve Chair Jerome Powell said on Wednesday, as per a Reuters report.
Speaking at his final policy press conference as Fed chair, Powell highlighted that economic growth remains strong and is expected to exceed 2% this year. The outlook is being supported by steady consumer spending and a surge in business investment, particularly in data center infrastructure, Reuters reported.
Powell noted that household consumption has held up well, with recent economic data indicating sustained momentum. At the same time, robust demand for data centers across the country has emerged as a key driver of investment activity, reflecting the growing importance of digital infrastructure in the U.S. economy, as per the report.
He also reiterated the Federal Reserve’s commitment to bringing inflation back to its 2% target. Powell indicated that price pressures are likely to ease over the course of the year, aided by the fading impact of last year’s tariff-driven rise in goods prices.
The remarks underscore the central bank’s confidence in the underlying strength of the economy, even as it navigates external shocks and works toward restoring price stability.
At the same time, Powell acknowledged that risks remain, particularly from global uncertainties and potential volatility in energy markets. However, he suggested that the broader economic fundamentals, including a strong labor market and ongoing investment trends, are providing a buffer against such external pressures.
Market participants are now closely watching how the Federal Reserve balances its growth outlook with its inflation mandate in the coming months. Any shifts in monetary policy stance will likely depend on incoming data, especially on prices and employment, as the central bank assesses the appropriate path forward, the report added.
Speaking at his final policy press conference as Fed chair, Powell highlighted that economic growth remains strong and is expected to exceed 2% this year. The outlook is being supported by steady consumer spending and a surge in business investment, particularly in data center infrastructure, Reuters reported.
Powell noted that household consumption has held up well, with recent economic data indicating sustained momentum. At the same time, robust demand for data centers across the country has emerged as a key driver of investment activity, reflecting the growing importance of digital infrastructure in the U.S. economy, as per the report.
He also reiterated the Federal Reserve’s commitment to bringing inflation back to its 2% target. Powell indicated that price pressures are likely to ease over the course of the year, aided by the fading impact of last year’s tariff-driven rise in goods prices.
The remarks underscore the central bank’s confidence in the underlying strength of the economy, even as it navigates external shocks and works toward restoring price stability.
At the same time, Powell acknowledged that risks remain, particularly from global uncertainties and potential volatility in energy markets. However, he suggested that the broader economic fundamentals, including a strong labor market and ongoing investment trends, are providing a buffer against such external pressures.
ADVERTISEMENT
Market participants are now closely watching how the Federal Reserve balances its growth outlook with its inflation mandate in the coming months. Any shifts in monetary policy stance will likely depend on incoming data, especially on prices and employment, as the central bank assesses the appropriate path forward, the report added.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
Related Articles
US economy expanded at solid 2.1% pace in January-March, government says, upgrading last estimate2026-06-25T12:51:06Z- US economy remains strong, India must accelerate reforms and AI adoption: Ajay Srivastava2026-06-04T08:37:05Z
- Flesh-eating parasitic fly screwworm that could cause millions of dollars damage to US economy detected2026-05-30T16:35:46Z
ADVERTISEMENT
