Summary
- Chair Jerome Powell said inflationary pressures remain persistent and upward pressure on prices could continue in the near term.
- He estimated February’s PCE price index at 2.8% and core PCE at 3.0%, adding that near-term inflation expectations have also risen.
- He said the situation in the Middle East and rising energy prices are geopolitical risks that could have uncertain effects on the economy and inflation.
Forecast Trend Report by Period
Jerome Powell, chair of the US Federal Reserve (Fed), assessed that inflationary pressures remain persistent.
On the 18th (local time), according to Walter Bloomberg, Chair Powell said, “Inflation remains somewhat elevated,” adding that upward pressure on prices could continue in the near term.
He estimated that the year-on-year increase in the February Personal Consumption Expenditures (PCE) price index was 2.8% and core PCE was 3.0%, and explained that near-term inflation expectations have also risen recently.
He also pointed to geopolitical risks as a key variable, saying, “The impact of the situation in the Middle East on the economy is uncertain.”
In particular, he warned that rising energy prices could push up headline inflation in the near term.
Meanwhile, Powell said the rate cuts carried out last year created a policy environment close to the current neutral rate level.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
