Fed delivers good news overall on economy

February 1, 2024, Interview: "The Federal Reserve did not cut interest rates, but chair Jerome Powell said things appear on a positive path and suggested the central bank may ease borrowing costs later this year. “This is a good economy,” he said following Wednesday’s meeting of the Federal Open Market Committee (FOMC), which sets Fed policy. The committee voted unanimously to hold interest rates at 5.25-5.55 percent until there’s more data showing that inflation’s downward trend over the last six months is solid and enduring. One inflation measure, the Consumer Price Index, is now 3.4 percent, still above the Fed’s 2 percent target, but well below the pandemic-driven high of 9.1 percent in June 2022. The Gazette spoke with economist Jeffrey A. Frankel, James W. Harpel Professor of Capital Formation and Growth at Harvard Kennedy School, about the Fed’s strategy and where the U.S. economy currently stands. Interview has been edited for clarity and length."