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Fed chair: 'There is no soft inflation target' — 2% goal reaffirmed
Summary
The FOMC chair rejected the idea of a 'soft' inflation target and reiterated the committee’s commitment to its 2% inflation objective, citing five years of elevated inflation that cannot be reversed quickly.
The Chair said "Inflation remains elevated relative to the committee's 2% goal" and emphasized that "there is no soft inflation target." He repeated that "there's only a target and it's 2%." The remarks underscored the committee’s public commitment to its inflation objective after more than five years of above-target readings.
The chair cautioned that the recent modest month-to-month price declines do not mean the problem is solved, saying the high inflation of the prior five years "cannot be cured in 9 weeks or by a single month of modest price decreases." Officials framed the stance as necessary to preserve the Fed's credibility and to deliver on their responsibilities to the public.
