Powell Says Fed Will Act as Appropriate to Sustain Economic Expansion

The transcript discusses the FOMC's favorable economic outlook, with low unemployment and a gradual return of inflation to 2%. Despite this, risks have increased, prompting a review of monetary policy. The FOMC has not changed the federal funds rate but has updated its policy statement to closely monitor economic data. The committee is considering whether uncertainties require more accommodative policies, while being cautious not to overreact to short-term data fluctuations.

What uncertainties are the FOMC grappling with that may affect the economic outlook?

How does the FOMC plan to respond to incoming information regarding the economic outlook?