Quickly understand the history and background of various well-known coins

Powell: Inflation Progress Expected, FOMC Ahead

Coin WorldWednesday, Jan 29, 2025 4:26 pm ET

1min read

Powell: Further Progress on Inflation Expected

Federal Reserve Chair Jerome Powell recently stated that the central bank expects to see further progress on inflation in the coming months. This optimism comes as the latest inflation data has shown signs of improvement, with the consumer price index (CPI) and personal consumption expenditures (PCE) price index both declining in December. Powell's comments suggest that the Fed is confident in its ability to bring inflation back to its 2% target.

Powell's remarks are in line with the Fed's previous statements, which have indicated that inflation is likely to continue to decline in the near term. The central bank has attributed this expected improvement to the waning of base effects and the cooling of the labor market. However, Powell also acknowledged that there is still uncertainty surrounding the inflation outlook, and the Fed will continue to monitor the situation closely.

The Fed's latest projections show that the central bank expects inflation to decline to around 2% by the end of 2025. This projection is based on the assumption that the economy will continue to grow at a moderate pace and that there will be no significant shocks to the system. However, the Fed has also made it clear that it is prepared to adjust its policy if necessary to achieve its inflation target.

Powell's comments come as the Fed prepares to release its latest economic projections at the upcoming Federal Open Market Committee (FOMC) meeting. The meeting, scheduled for January 31st, will be closely watched by markets as investors look for clues about the Fed's future policy moves. The central bank is expected to keep interest rates unchanged at this meeting, but investors will be paying close attention to Powell's press conference for any hints about the Fed's plans for the coming months.

In addition to Powell's comments, other Fed officials have also expressed optimism about the inflation outlook. For example, Atlanta Fed President Raphael Bosticco recently stated that he expects inflation to decline to around 2% by the end of 2025, while San Francisco Fed President Mary Daly has expressed confidence that the Fed will be able to achieve its inflation target.

Overall, the Fed's optimistic outlook on inflation suggests that the central bank is confident in its ability to bring inflation back to its target. However, investors should continue to monitor the situation closely, as there is still uncertainty surrounding the inflation outlook. The upcoming FOMC meeting will be an important

Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.