US Service Sector Dilemma: Expansion Amid Soft Labor Market & Rising Prices

The Federal Reserve Board on Wednesday finalized the hypothetical scenarios for its annual stress test, which helps ensure that large banks can continue to lend to households and ...

Thank you, Francisco, for the kind introduction, and many thanks to the Economic Club of Miami for the opportunity to speak with you today. It is wonderful to see firsthand the vibrant and growing South Florida economy. The Miami region's unemployment rate is below the national average, and consumers in Florida have been among the country's most resilient. I am happy to have the opportunity to engage with all of you who are central to that dynamism. I am especially glad to have the chance to update you on my economic outlook shortly after the Federal Open Market Committee's (FOMC's) first meeting of the year. As always, I am focused on achieving the dual mandate of maximum employment and stable prices given to us by Congress. This evening, I will discuss both parts of that mandate and give you my view of how the economy is evolving. I will then share some thoughts about the apparent disconnect between sentiment and activity readings before discussing implications for monetary policy. FED GOV COOK/MEC: RISKS TO BOTH FED MANDATES BUT HIGHER FOR INFLATION; VIGILANT, WITH OPTIMISM 'TEMPERED WITH CAUTION' #Cook #FederalReserve #economy FED GOV COOK/MEC: STRONG GROWTH 'LIKELY MASKS A CHALLENGING SITUATION FACING MANY FAMILIES, PARTICULARLY LOW INCOME AND MODERATE-INCOME FAMILIES' #Cook #FederalReserve #economy FED GOV COOK/MEC: PROGRESS ON INFLATION 'ESSENTIALLY STALLED;' 'SUCH A PLATEAU IS FRUSTRATING;' SEE UPTICK IN CORE GOODS PRICES' #Cook #FederalReserve #economy