Powell: We Have a Resilient Economy on Our Hands

The transcript discusses the unexpected resilience of the US economy, highlighting low jobless claims, strong retail sales, and industrial production. Despite predictions of a recession, the economy is growing above its long-term trend, driven by consumer spending and a strong job market. Inflation is decreasing, leading to higher real wages. The economy may be less affected by interest rates due to fixed-rate mortgages and companies managing debt. However, interest-sensitive sectors like housing and durable goods are impacted, with consumers hesitant to make large purchases. Overall, strong demand persists despite policy efforts to slow growth.

How does the current economic situation compare to previous forecasts about a potential recession?

What evidence suggests that the housing market has been affected by higher interest rates?