Powell: Progress towards 2% inflation target has slowed

On April 4, Federal Reserve Chairperson Jerome Powell spoke on the economic outlook. He said that recently, our progress towards achieving our 2% inflation target has slowed. In the 12 months to February, total PCE prices increased by 2.5%. Core PCE prices, excluding the more volatile food and energy categories, rose by 2.8%. Going forward, higher tariffs will play a role in our economy and could raise inflation in the coming quarters. By most measures, long-term inflation expectations (inflation expectations for the coming years) remain well anchored and in line with our 2% inflation target. We remain committed to returning inflation to our 2% target on a sustainable basis.