The economy has made significant progress, and the measures taken to stimulate growth are producing positive results. This is a reassuring sign for those who have been closely monitoring the economic recovery. While the inflation rate is still higher than desired, it has eased considerably, indicating that the economy is moving in the right direction.

The Federal Reserve will likely continue to monitor the situation closely and adjust its policies as necessary to ensure a stable and sustainable economic recovery. This may involve keeping interest rates high enough to slow spending and defeat high inflation without derailing the economy. The goal is to achieve a rare "soft landing," whereby inflation is conquered without causing a recession.

The Fed's rate policies could have significant consequences for the presidential race, as voters have taken a generally sour view of the economy under President Joe Biden. Despite low unemployment and robust hiring, consumers are facing high borrowing rates and prices that remain much higher than they were before the pandemic struck.

The economy is growing at a solid pace, and hiring has remained strong, but the Fed wants to see more good data to bolster confidence that inflation is moving sustainably toward 2 percent. The Fed Chair noted that while progress has been made, the job of sustainably restoring 2 percent inflation is not yet done.