Federal Reserve Chairman Jerome Powell said that The U.S. economy has slowed significantly since last year's rapid pace, as he announced a further 0.75 basis point raise in the federal interest rate.
POWELL: The US economy has slowed significantly from last year's rapid pace. Real GDP rose at a pace of 2.6% last quarter, but is unchanged so far this year. Recent indicators point to modest growth of spending and production this quarter. Growth in consumer spending has slowed from last year's rapid pace in part reflecting lower real disposable income and tighter financial conditions. Activity in the housing sector has weakened significantly, largely reflecting higher mortgage rates. Higher interest rates and slower output growth also appear to be weighing on business fixed investment. Despite the slowdown in growth, the labor market remains extremely tight with the unemployment rate at a 50-year low, job vacancies still very high and wage growth elevated. Job gains have been robust with employment rising by an average of two hundred and eighty-nine thousand jobs per month over August and September.