Jay Powell

The U.S.

economy expanded at a solid pace last year and is coming into 2026 on a firm footing.

While job gains have remained low, the unemployment rate has shown some signs of stabilization, and inflation remains somewhat elevated.

Every advanced economy democracy in the world

has come around to this common practice.

It's just an institutional arrangement that has served the people well.

And that is to have a separation between, to not have direct elected official control over the setting of monetary policy.

And the reason is that monetary policy can be used through an election cycle to affect the economy in a way that will be politically worthwhile.

Since last September, we've lowered our policy rate 75 basis points or three quarters of a percentage point, bringing it within a range of plausible estimates of neutral.

This normalization of our policy stance should help stabilize the labor market while allowing inflation to resume its downward trend toward 2% once the effects of tariff increases have passed through.

Stay out of elected politics.

Don't get pulled into elected politics.

Don't do it.

The U.S.

economy expanded at a solid pace last year and is coming into 2026 on a firm footing.

While job gains have remained low, the unemployment rate has shown some signs of stabilization, and inflation remains somewhat elevated.

Every advanced economy democracy in the world

has come around to this common practice.

It's just an institutional arrangement that has served the people well.

And that is to have a separation between, to not have direct elected official control over the setting of monetary policy.