Summary
- Jerome Powell said inflation pressures remain persistent and that inflation remains somewhat elevated.
- He said the February personal consumption expenditures (PCE) price index increase is estimated at 2.8%, with core PCE at 3.0%, and added that near-term inflation expectations have also risen recently.
- Powell warned that geopolitical risks stemming from the Middle East situation and rising energy prices could push up headline inflation in the near term, and said the rate cuts implemented last year have created a policy environment close to the current neutral rate level.
Forecast Trend Report by Period
Jerome Powell, chair of the US Federal Reserve (Fed), said inflationary pressures remain persistent.
Powell noted that "inflation remains somewhat elevated" and said upward price pressures could continue in the near term.
He estimated the February personal consumption expenditures (PCE) price index increase at 2.8% and core PCE at 3.0%, adding that near-term inflation expectations have also risen recently.
He also pointed to geopolitical risk as a key variable, saying "it is uncertain how the situation in the Middle East will affect the economy."
He warned in particular that higher energy prices could push up headline inflation in the near term.
Meanwhile, Powell assessed that the rate cuts carried out last year have created a policy environment that is now close to the current level of the neutral rate.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
