- First Q: Walk us through the committee's inflation forecast? Does committee not expect further progress on inflation this year, given today's CPI?
- A: We had very low readings in 2H 2023, and we're now lapping those, so base effects impact the end-year reading. It's a certain level of conservatism. Looking for "good but not great" numbers ahead. Do we have high confidence that's right? No, just a conservative way to forecast things. If we got more readings like today's then of course that wouldn't be the case.... if you're at 2.6-2.7, that's a really good place to be.
FED: Q&A Begins, Chair Powell Questioned On Inflation Forecasts
Last updated at:Jun-12 18:43By: Jack Lewis
Federal Reserve
- First Q: Walk us through the committee's inflation forecast? Does committee not expect further progress on inflation this year, given today's CPI?
- A: We had very low readings in 2H 2023, and we're now lapping those, so base effects impact the end-year reading. It's a certain level of conservatism. Looking for "good but not great" numbers ahead. Do we have high confidence that's right? No, just a conservative way to forecast things. If we got more readings like today's then of course that wouldn't be the case.... if you're at 2.6-2.7, that's a really good place to be.
