Summary
- Jerome Powell said short-term inflation expectations have risen and that the situation in the Middle East is adding to uncertainty.
- He said the current monetary policy stance is appropriate and maintained that there is little need for an immediate interest-rate adjustment.
- Powell said he sees March PCE inflation at about 3.5%% and that energy prices have not yet peaked, while tariff-driven inflation is expected to ease over the coming quarters.
Forecast Trend Report by Period
Federal Reserve Chair Jerome Powell said short-term inflation expectations have risen and pointed to the Middle East as another source of uncertainty for policymakers.
Powell made the remarks on April 29, according to Walter Bloomberg.
He said the current monetary policy stance is appropriate and maintained that there is little need for an immediate interest-rate adjustment.
The situation in the Middle East is increasing uncertainty, he said, with geopolitical risks affecting the economic outlook.
Powell said he sees March personal consumption expenditures inflation at about 3.5%.
He also said energy prices have not yet peaked and that tariff-driven inflation is expected to ease over the coming quarters.
Markets are watching how higher inflation expectations and geopolitical risks could shape the path of interest rates. Even with the Fed keeping policy unchanged for now, a data-dependent approach is likely to continue.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
