Inflation Declines But Remains Elevated, Powell Notes

IconCryptoNewsTerminal Staff13 Jun, 2024

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Inflation Declines But Remains Elevated, Powell Notes

Federal Reserve Chair Jerome Powell stated during a press conference that inflation has shown signs of easing, but remains above the central bank's target. Powell's comments come after the Federal Open Market Committee (FOMC) raised interest rates by 25 basis points, marking the eighth consecutive hike. In assessing the current economic climate, Powell acknowledged that inflation has moderated. However, he emphasized that it is still unacceptably high and that the Fed's work in bringing it down is not yet complete. The Fed's target inflation rate is 2%. However, recent data has shown that inflation remains well above this level. The Consumer Price Index (CPI), a key measure of inflation, rose by 6.4% year-over-year in January. While this represents a decline from the peak of 9.1% in June 2022, it is still significantly higher than the Fed's target. Powell indicated that the Fed will continue to raise interest rates in an effort to bring inflation down to its target. He also noted that the Fed will be closely monitoring economic data and making adjustments as needed.

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