Powell: Progress towards 2% inflation target has slowed

Federal Reserve Chairperson Jerome Powell, speaking on the economic outlook, said, Recently, our progress toward our 2% inflation target has slowed. In the 12 months through February, total PCE prices rose 2.5%. Core PCE prices, excluding the volatile food and energy categories, rose 2.8%. Looking ahead, higher tariffs will play a role in our economy and could raise inflation in the coming quarters. Long-term inflation expectations (inflation expectations for the coming years) remain well anchored by most measures and in line with our 2% inflation target. We remain committed to returning inflation to our 2% target on a sustainable basis.