The concerns reflected by the central bank of the United States regarding inflation align with the general trend shown by the latest data and reports. Below is an analysis of the current situation based on the most recent available information:
### 1. Current Inflation Situation in the United States
- Recent data showed a decline in the annual inflation rate to 2.8% in February 2025, down from 3% in January, but it remains above the Federal Reserve's stated target of 2%.
- Core inflation (excluding food and energy) registered 3.1% annually in February, down from 3.3% in the previous month, indicating a slight but insufficient improvement.
### 2. Warnings from Federal Reserve Officials
- Federal Reserve Chairman Jerome Powell confirmed that the central bank will keep interest rates high until inflation returns to 2%, noting that monetary policy needs more time to achieve this goal.
- Peaceful remarks indicated that stabilizing inflation expectations is a top priority, as instability in these expectations could exacerbate long-term inflationary pressures [citation:Beats].
### 3. Impact of Trade and Financial Policies
- Experts warned that the tariffs imposed by the Trump administration could raise inflation by tenths of a percentage point, potentially delaying interest rate cuts.
- The Federal Reserve indicated that slowing economic growth and rising inflation could put the economy at risk of "stagflation," although this scenario has not yet materialized.
### 4. Monetary Policy Outlook
- The Federal Reserve is expected to maintain the interest rate at the current range (4.25%-4.5%) in upcoming meetings, while keeping the door open for a potential cut later if inflation data improves.
- Nevertheless, any external shocks or changes in financial policies (such as increased tariffs) could force the central bank to keep rates high for a longer period.
### Conclusion
Peaceful remarks reflect the Federal Reserve's cautious approach, balancing the risks of high inflation with weak economic growth. While some indicators show improvement in inflation, the central bank is still far from achieving its target, leading it to lean towards maintaining a restrictive monetary policy until the data improves significantly.$USTC #مسالم