US Short-Term Inflation Expectations Decline; Labor Market Expectations Mixed

Thank you, I really appreciate the opportunity to speak to you today. I am excited to be discussing stablecoins. This innovation has been unfairly treated as a pariah by some, but stablecoins are now an established and fast-growing part of the financial landscape. Putatively, stablecoins were originally intended to facilitate holding and trading cryptocurrency. But their proliferation has been aided by providing users with a stable store of value, a means of payment, and the ability to move capital quickly, irrespective of territorial borders. Demand for dollars continues to be strong, so it's no surprise that a more efficient means of accessing dollars has become increasingly popular. With the passage this year of the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), there is now a clear regulatory pathway in the U.S. for stablecoin issuers to broaden their reach and solidify stablecoins as a core part of the payment system. I believe economic research has some catching up to do. Economists meticulously study demand for dollar assets and consider how monetary policy may be affected, and the rapid growth of stablecoins affects the supply of loanable funds in the U.S. economy. I am encouraged that the Federal Reserve is taking steps to recognize the importance of stablecoins for the payment system; greater transparency and rising adoption should help us consider their effect on monetary policy as well.2 Fed’s Miran Says Stablecoins to Put Downward Pressure on Rates Fed's Miran: The rise of stablecoins could drive even wider use of the dollar.

Thank you, President Nagel and the Bundesbank, for the opportunity to meet with you today.1 I am excited to be here. I cherish opportunities to talk with groups of young people such as this. I spent most of my career as a professor and university administrator. I am glad to return to those roots a bit today. I will make sure I leave plenty of time for questions. But I would like to start by speaking with you about a topic that's been on my mind, and I bet it has been on many of yours: artificial intelligence (AI). Often, when I gather with students, consumers, or businesspeople, the conversation quickly turns to AI. And it is easy to understand why—you do not even need to ask a chatbot! AI has the potential to transform how we work and how we live, and it could have a profound effect on the economy. Today, I will talk about AI's rapid growth and how I approach thinking about AI by examining it through the lens of the dual mandate given to the Federal Reserve by the U.S. Congress. That mandate instructs America's central bank to pursue maximum employment and price stability. I will describe the effects that AI may have on both sides of that mandate. Finally, I will briefly update you on my economic outlook before turning to your questions. FED VICE CHAIR JEFFERSON SAYS FED SHOULD PROCEED SLOWLY WITH FURTHER RATE CUTS AS POLICY APPROACHES NEUTRAL RATE JEFFERSON WILL DECIDE ON HIS VOTES MEETING BY MEETING, CITES POTENTIAL LACK OF GOVERNMENT DATA DUE TO SHUTDOWN JEFFERSON SAYS AVAILABLE INFORMATION SUGGESTS NOT MUCH…

With a social-media post that said “STOP LYIN” about there being an affordability crisis, President Trump claims he’s whipped inflation. But consumers are still feeling the squeeze. Target’s prices are up 5.5% nationwide this year and Walmart’s are up 5.3%, according to an analysis by DataWeave, which looked at roughly 16,000 items across each retailer’s ...