Mr. Balkin said the economy was in good shape, which allowed the Fed to reduce borrowing costs. "A strong but more discerning consumer, combined with a more productive and valuable workforce, has made the economy a great place to be," Mr. Balkin said on Tuesday in remarks prepared for a joint summit speech in Baltimore. "The Fed has the ability to respond appropriately regardless of how the economy evolves," he said.
The US economy is in good shape, with cooler jobs data in recent months indicating a soft landing rather than a recession, according to Treasury secretary Janet Yellen, who said there had been no major job cuts and a "deep recovery".