Fed's Powell: Seeing some softening, the economy is growing about 1.6% this year, slower than last year

*POWELL: DON'T SEE SIGNIFICANT DETERIORATION ANYWHERE IN ECONOMY FED’S POWELL: OVERALL ECONOMIC OUTLOOK REMAINS POSITIVE; NOTES IT’S CHALLENGING FOR A CENTRAL BANK WHEN POLICY GOALS ARE IN TENSION FED’S POWELL: BELIEVES THE FED HAS TAKEN THE RIGHT STEPS SO FAR; WARNS IT WOULD BE INAPPROPRIATE TO DISMISS THE INFLATION CHALLENGE *POWELL: FED IS WATCHING CREDIT CONDITIONS VERY CAREFULLY *POWELL: DON'T SEE A BROADER CREDIT ISSUE AT THIS POINT *Fed's Powell Acknowledges Rising Defaults in Subprime Credit

*POWELL: FED DOESN'T LOOK AT ANY ONE ASSET PRICE, SAY IT'S WRONG *POWELL: IN AGGREGATE, HOUSEHOLDS ARE IN GOOD SHAPE FINANCIALLY FED’S POWELL: DOESN’T SEE EXCESSIVE LEVERAGE IN THE BANKING OR FINANCIAL SYSTEM; DESCRIBES THE SITUATION AS MIXED BUT NOT OVERLY TROUBLING FED’S POWELL: OVERALL ECONOMIC OUTLOOK NOT OVERLY TROUBLING; NOTES INTEREST RATES AREN’T A MAJOR FACTOR IN DATA CENTER INVESTMENT, BUT LOWER RATES WILL MARGINALLY SUPPORT DEMAND AND HIRING FED’S POWELL: UNLIKE THE DOT-COM ERA WHEN MANY WERE JUST IDEAS, TODAY’S COMPANIES HAVE REAL EARNINGS AND PROFITS — THIS IS NOT THE SAME KIND OF BUBBLE FED’S POWELL: CONSUMER SPENDING HAS BEEN A MAJOR SUPPORT FOR THE ECONOMY AND REMAINS A BIG DRIVER OF ACTIVITY; NOTES CONSUMER SPENDING PLAYS A MUCH LARGER ROLE THAN AI IN OVERALL ECONOMIC GROWTH

Fed's Powell: Tension between two goals, and strong views across committee. *POWELL: FED HAS NOT MADE A DECISION ABOUT DECEMBER MEETING FED’S POWELL: TODAY’S RATE CUT WAS A RISK-MANAGEMENT MOVE; DECISIONS GOING FORWARD WILL BE A DIFFERENT MATTER Fed's Powell: We can't address both employment, inflation risks with our one tool. FED’S POWELL: NOTES TIGHTENING IN MONEY MARKETS OVER THE PAST THREE WEEKS; ASSESSES RESERVES AS ONLY SLIGHTLY ABOVE AMPLE AND SEES LITTLE BENEFIT IN FURTHER BALANCE SHEET REDUCTION