Fed’s Powell: It Will Take into 2024 to Get Inflation Close to 2%

>> So you said the inflation rate target is 2% but why 2% and not 3% 3% could be tolerable really for most of organized history 3% is considered okay why do you want 2%
>> 2% is the global standard, and that is our objective as measured by the pce index. And that’s not something we’re looking at changing. That isn’t going to change.
>> That’s not going to change?
>> Not going to change, no
>> Okay, so you need to get to 2% and your goal to get there is by what period of time would you like to get there?
>> Well, we say we’re using our tools to get there overtime f. You look at our forecast, we expect 2023 to be a year of significant declines in inflation, and it’s actually our job to make sure that’s the case but I would tell you that with inflation headline pce inflation is running about 5% on a 12-month basis core at 4.4. My guess is it will take certainly into not just this year but next year to get down close to 2%.
>> So 2% is firm
>> Yes
>> You’re not going to get off that
>> No.