Federal Reserve Chair Jerome Powell emphasized on Friday that employment and inflation remain core data points guiding monetary policy, with the labor market presenting particular complexity.

He reiterated that while the public often focuses on the Consumer Price Index (CPI), the Federal Reserve targets inflation using the Personal Consumption Expenditures (PCE) Price Index, which better reflects shifts in consumer behavior. Powell stressed the importance of monitoring consumer and business spending, describing both as "crucial" for assessing economic momentum, while noting that the Fed reviews a wide range of data before making decisions and speaks directly with participants across sectors.

"The Beige Book is a great resource," Powell said, referring to the Fed's summary of anecdotal economic conditions gathered from business contacts in each Federal Reserve district.