Fed Officials Say They’re Confident Inflation Will Fall To 2% … Eventually | Global News Avenue

In separate remarks Wednesday, committee members Federal Open Market Committee Inflation is expected to fall to the central bank’s 2% annual target – although that may not be the case for some time.

Voting members of the Federal Open Market Committee, Chicago Fed President Austan Goolsby, New York Fed President John Williams, and Richmond Fed nonvoter Thomas Barkin said that various economic data indicate that inflation is cooling, although It’s gradually cooling down.

Fed members comment hours after Bureau of Labor Statistics releases data Official report on consumer prices for Decemberindicating that inflation accelerated during the month. However, “core” inflation, which excludes fluctuations in food and energy prices, fell for the first time in four months, raising hopes among officials that price increases are slowing.

“I’m very confident that we can get that to 2%,” Goolsby said during an online question-and-answer event.

The Federal Reserve has cut key interest rates since September from two-decade highs in an effort to stimulate the economy and prevent the recent labor market slowdown from turning into mass unemployment. But financial markets expect the Fed to hold off on further rate cuts for now as the latest data shows inflation remains stubborn and the job market is booming.

Barkin confirmed that view in remarks to reporters after an event on Wednesday, Bloomberg reported. He said interest rates should remain in “restrictive” territory for the time being, meaning they should remain high enough to weigh on the economy and inflation.

Williams noted that the current inflation rate in the 2-3% range is well below 2022 levels, when CPI hit 9.1%, the highest level since 1981.

“This is a sharp decline and the deflationary process is still ongoing,” he said in prepared remarks at an economic summit in Connecticut. “But we’re still not on the 2% target, and we’re going to need more time to achieve that consistently.”