The Federal Reserve System's structure and its responsibilities were discussed in a recent speech, highlighting its role in supporting the US economy and financial system. The speech emphasized the Fed's decentralized nature, which allows it to serve economic interests without political pressures. It also outlined the functions of the Federal Open Market Committee (FOMC), responsible for setting monetary policy.

The speaker acknowledged that "the views I express today are my own and not necessarily those of the Federal Reserve System or my colleagues on the Federal Open Market Committee." The FOMC is tasked with achieving maximum employment and stable prices, utilizing a variety of information to assess economic conditions.

Recent data indicates that while real GDP slightly decreased in Q1, consumer spending and business investment remained robust. However, survey measures of sentiment have declined due to policy uncertainty. The labor market remains healthy with steady job gains, maintaining an unemployment rate of 4.2%.

Inflation progress has been noted but hasn't yet reached the target 2% objective sustainably. "Headline PCE inflation was 2.1 percent through April," with May estimates at 2.3%. Core PCE inflation has been higher than desired levels for four years.

Trade policies, particularly tariffs, have introduced uncertainty affecting employment and inflation paths. Businesses have reported subdued activity due to increased policy uncertainty including tariffs and immigration policies.

Financial conditions show optimism despite cautious sentiments from businesses regarding government policies. Equity indices have recovered from tariff-related declines, but financial markets reflect varied reactions.

The decision to hold the federal funds rate steady was supported by current economic resilience. There is caution against imminent rate cuts unless significant changes occur in labor market health or inflation trends.

"An important role for monetary policy is to promote economic stability," which may require moving slowly amidst uncertainty or swiftly when clarity arises in data.

In conclusion, ongoing assessment of incoming data will guide future monetary policy decisions to fulfill the dual mandate of maximum employment and price stability as uncertainties resolve over time.