Powell to Revise Policy Outlook Amid Persistent Inflation

Federal Reserve Chair Jerome Powell is expected to provide an update on his perspective regarding U.S. inflation and economic conditions. This comes in the wake of new data revealing that the personal consumption expenditures price index rose at a 2.5% annual rate in February, marking a slight increase from the 2.4% rate observed the previous month. The core index, which excludes the volatile food and energy sectors, also saw a 0.3% month-to-month rise, challenging Powell's earlier projection that it would be "well below" this figure.

These developments reflect an inflation rate that is somewhat higher than anticipated but still aligns with the Federal Reserve's longer-term goal of reducing inflation to a 2% target. In response to the current economic indicators, the Fed has recently opted to maintain the policy interest rate between 5.25% and 5.5%. Additionally, the Fed projects a decrease in the rate by 0.75 percentage points by the year's end.

Powell is scheduled to discuss these issues and provide further insights during an appearance at the San Francisco Fed, where he will be interviewed by Kai Ryssdal of public radio's "Market Place." This event will offer an opportunity for Powell to elaborate on the Federal Reserve's response to the latest economic data and its implications for future monetary policy.