Fed Chair Powell: The best thing we can do for the public is to restore price stability

Inflation & Monetary Policy - The Federal Reserve's decisions are based on data, not speculation [1] - The forecast for inflation in December was 25% core PCE for 2025 [2] - Tariffs are expected to be substantially larger than previously anticipated, leading to higher inflation [3] - Inflation forecasts have increased from 25% in December to 28% in March and 31% currently for 2025, a 60 basis point increase [4] - The Federal Reserve aims to restore price stability, targeting 2% inflation on a durable and sustainable basis, alongside maximum employment [7] - Current monetary policy is considered modestly restrictive [8] - Confidence that inflation is coming down is crucial for future policy adjustments, but tariffs create uncertainty [9] - The Federal Reserve is taking time to assess the size of the effects of tariffs before reacting [10] Economic Outlook - The unemployment rate is 42% [10] - Headline inflation is 23% over a 12-month basis [11] - Real wages are increasing at a healthy pace [11] - The economy is described as good and solid, with decent growth [11]