Fed Chair Jerome Powell: Best thing we can do for affordability is keep inflation at 2%

Summary

Federal Reserve Chair Jerome Powell answers questions following the FOMC's decision to leave rates unchanged in January. He discusses uneven consumer spending, affordability concerns, and the Fed's commitment to returning inflation to 2%. He also addresses uncertainty around AI's impact on jobs, productivity, and the labor market.

• Powell says higher-income households are supported by rising real estate and stock wealth, while lower-income consumers are trading down and buying less.
• Affordability remains a top concern; Powell says the Fed's best contribution is keeping inflation under control and reaching the 2% target.
• On AI, Powell sees a wide range of possible labor-market outcomes and says the macro effects are difficult to measure.
• He notes AI may be connected to lower hiring for recent college graduates but is not the only driver.
• The FOMC left rates unchanged in January, according to the video description.
• No specific securities, tickers, sectors, commodities, or investable assets were named in the excerpt.