00:00Inflation has eased significantly from its highs in mid-2022, but remains somewhat elevated
00:05relative to our 2 percent longer-run goal. Estimates based on the Consumer Price Index
00:11and other data indicate that total PCE prices rose 2.8 percent over the 12 months ending in
00:17February, and that excluding the volatile food and energy categories, core PCE prices rose 3.0 percent.
00:25These elevated readings largely reflect inflation in the goods sector, which has been boosted
00:31by the effects of tariffs. Near-term measures of inflation expectations have risen in recent
00:38weeks, likely reflecting the substantial rise in oil prices caused by the supply disruptions
00:43in the Middle East. Most measures of longer-term expectations remain consistent with our 2 percent
00:49inflation goal. The median projection in the SEP for total PCE inflation this year
00:55is 2.7 percent and 2.2 percent next year, a bit higher than projected in December.
01:04Our monetary policy actions are guided by our dual mandate to promote maximum employment
01:09and stable prices for the American people. At today's meeting, the committee decided to
01:14maintain the target range for the federal funds rate at 3.5 to 3.75 percent.
01:19From last September through December, we lowered our policy rate to three-quarters of a percentage
01:24point, bringing it within a range of plausible estimates of neutral.
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