Fed Chair Powell Projects Core PCE Near Target Range

Jerome Powell stated tariff-adjusted inflation is near the 2% goal, maintaining the Fed’s stance that tariffs are not a one-time inflation shock.

126d ago

Summary

Federal Reserve Chair Jerome Powell reported that tariff-adjusted inflation is close to the central bank’s 2% target and reiterated that tariffs are not considered a one-off inflation shock. His remarks reflect continued commitment to achieving the inflation objective while viewing current monetary policy as slightly restrictive.

Terms & Concepts

Core PCE: Core Personal Consumption Expenditures price index measures inflation excluding volatile food and energy prices, used by the Federal Reserve to assess underlying inflation trends.
Monetary Policy Tightness: Refers to the level of restrictiveness in a central bank’s policy stance, such as higher interest rates, aimed at controlling inflation and economic activity.
Inflation Target: A specific inflation rate that a central bank aims to achieve over the medium term to ensure price stability, often set around 2% in the U.S.