Powell: Progress towards 2% inflation target slowing down

Federal Reserve Chairman Jerome Powell spoke on the economic outlook, stating: ‘Recently, progress toward our 2 per cent inflation target has slowed. In the 12 months to February, total PCE prices rose 2.5 per cent. Core PCE prices, which exclude the volatile food and energy categories, rose 2.8 per cent.

Looking ahead, higher tariffs will play a role in our economy and could raise inflation in coming quarters. Longer-term inflation expectations (those for the next few years) remain well anchored and consistent with our 2% inflation target by most measures. We remain committed to returning inflation to our 2 per cent target on a sustainable basis.’