Powell Says Some Economic Headwinds Are Now Tailwinds

The transcript discusses the economic outlook, highlighting growth in household incomes, consumer spending, and fiscal policy's stimulative role. It anticipates inflation to stabilize around 2% and wages to rise. The FOMC has adjusted monetary policy by raising interest rates and normalizing the balance sheet to sustain a strong labor market and achieve inflation targets. Despite past economic headwinds turning into tailwinds, inflation remains below the 2% objective. The FOMC plans further gradual rate increases, balancing economic growth and inflation control, with decisions informed by incoming data.

What is the committee's objective regarding inflation over the medium term?

What are some of the headwinds that the US economy faced in previous years?