Name: Powell: The path to lower inflation will likely 'be bumpy'
Uploaded: 2023-04-11
Duration: 1 min 7 s
Description: Jerome Powell offers updates on the Federal Reserve's plans to fight high inflation.

Jerome Powell offers updates on the Federal Reserve's plans to fight high inflation.

Powell: The path to lower inflation will likely "be bumpy"

Politics

We remain committed to bringing inflation back down to our 2% goal and to keep longer term inflation expectations well anchored, reducing inflation is likely to require a period of below trend growth and some softening in labor market conditions. We no longer state that we anticipate that ongoing rate increases will be appropriate to quell inflation. Instead, we now anticipate that some additional policy affirming may be appropriate. We will closely monitor incoming data and carefully assess the actual and expected effects of tighter credit conditions on economic activity. The labor market and inflation inflation has moderated somewhat since the middle of last year. But the strength of these recent readings indicates that inflation pressures continue to run high. The median projection in the SEP for total PCE inflation is 3.3% for this year, 2.5% next year and 2.1% in 2025. The process of getting inflation back down to 2% has a long way to go and is likely to be bumpy.