jerome h powell : semiannual monetary policy report to the congress testimony by mr jerome h powell, chair of the board of governors of the federal reserve system, before the committee on financial services, us house of representatives, washington dc, 6 march 2024. * * * chairman mchenry, ranking member waters, and other members of the committee, i appreciate the opportunity to present the federal reserve's semiannual monetary policy report. the federal reserve remains squarely focused on our dual mandate to promote maximum employment and stable prices for the american people. the economy has made considerable progress toward these objectives over the past year. while inflation remains above the federal open market committee's ( fomc ) objective of 2 percent, it has eased substantially, and the slowing in inflation has occurred without a significant increase in unemployment. as labor market tightness has eased and progress on inflation has continued, the risks to achieving our employment and inflation goals have been moving into better balance. even so, the committee remains highly attentive to inflation risks and is acutely aware that high inflation imposes significant hardship, especially on those least able to meet the higher costs of essentials, like food, housing, and transportation. the fomc is strongly committed to returning inflation to its 2 percent objective. restoring price stability is essential to achieve a sustained period of strong labor market conditions that benefit all. i will review the current economic situation before turning to monetary policy. current economic situation and outlook economic activity expanded at a strong pace over the past year. for 2023 as a whole, gross domestic product increased 3. 1 percent, bolstered by solid consumer demand and improving supply conditions. activity in the housing sector was subdued over the past year, largely reflecting high mortgage rates. high interest rates also appear to have been weighing on business fixed investment. the labor market remains relatively tight, but supply and demand conditions have continued to come into better balance. since the middle of last year, payroll job gains have averaged 239, 000 jobs per month, and the unemployment rate has remained near historical lows, at 3. 7 percent. strong job creation has been accompanied by an increase in the supply of workers, particularly among individuals aged 25 to 54, and a continued strong pace of immigration. job vacancies have declined, and nominal wage growth has been easing. although the jobs - to - workers gap has narrowed, labor demand 1 / 3 bis - central bankers'speeches still exceeds the supply of available workers

required lawyers, commissioner of oaths, government officials and other officials or institutions. the bank has also licensed a bis central bankers ’ speeches credit reference bureau to help create credit histories for financial market participants that may serve as alternative to collateral. in addition, it has now become easier to access banking services through lower bank account opening balance, improved payments systems through mobile banking, e - money and increased numbers of automated teller machines and point of sale terminals. ladies and gentlemen, the bank of zambia has also partnered with the international labour organization ( ilo ) to promote the use of the famos check tool by financial service providers in order to enhance access to finance by women entrepreneurs. the tool is intended to enable financial service providers undertake a systematic assessment of the extent to which these institutions target women entrepreneurs, their needs and potentialities. the tool also assists financial service providers to develop appropriate strategies to extend their outreach to women entrepreneurs as well as develop products to meet the needs of women entrepreneurs. in this collaborative exercise, ilo has since facilitated capacity building within the bank of zambia and certified some members of staff to undertake the famos training within the entire financial sector. commercial banks have been expected to utilize the tool and use the results to tailor services and products that reach out to women. however progress made in this area could be improved. there is an urgent need therefore to reinvigorate the famos check tool. bank of zambia will continue to encourage financial institutions to administer the famos check tool and the cooperation of all stakeholders in this regard is vital. the bank of zambia will continue to create an enabling environment through policies, legislation and regulation that facilitate greater financial inclusion of women. you may wish to know that the bank has taken on board gender mainstreaming as part of its strategic plan, essentially to have a pluralistic approach that values the diversity among both women and men. ladies and gentlemen, let me remind you that zambia has affiliated itself to conventions and initiatives that have the specific intention of enhancing the welfare of women. the bank of zambia will continue to take the role of the provider of an enabling environment that enhances access to finance and financial services by all, especially those that have been traditionally excluded like the economically active poor women whose entrepreneurial prowess needs to be harnessed in order to reduce poverty and increase the economic welfare of our people. bank of zambia is therefore delighted to be associated with this study and conference which provide a unique opportunity to listen to findings of the study and exchange ideas on the various outcomes