(Bloomberg) -- The Federal Reserve’s ability to influence the economy depends on whether “people understand what we are saying,” Chair Jerome Powell said, highlighting the importance of work done by economic educators.
When Fed officials publish their projections for interest rates and the economy, “one of our goals is to influence spending and investment decisions today and in the months ahead,” Powell said in comments prepared for a town hall event with teachers in Washington Thursday.
“That will only be the case if people understand what we are saying and what it means for their own finances.”
The Fed chair didn’t comment on his outlook for rates or the economy.
Policymakers left the target range for their benchmark rate unchanged earlier this month at 5.25% to 5.5% — a 22-year high.
But fresh quarterly projections showed 12 of 19 officials favored another rate hike in 2023, underscoring a desire to ensure inflation continues to decelerate. US central bankers projected fewer cuts than previously anticipated in 2024, in part due to a stronger labor market.
Powell said that economic educators are “also conducting monetary policy” through their teaching as they impart knowledge that is instrumental in how the central bank promotes a healthy economy.
©2023 Bloomberg L.P.