Fed's Powell Says Case Remains 'Strong' for Gradual Rate Hikes

The US economy is performing well, with growth above long-term trends and a robust labor market. Unemployment is at its lowest since 2000, and inflation is nearing the 2% target. High demand for workers supports wage growth, though the US lags in labor force participation compared to other advanced economies. A tight labor market may boost investment in technology and training, benefiting productivity and minority groups. Achieving maximum employment with price and financial stability is a challenge. With low unemployment and balanced risks, gradual increases in the federal funds rate are justified.

What are the implications of inflation being close to the 2% objective?

What impact does a tight labor market have on businesses and technology?