ChainCatcher reported, citing Jin10, that Federal Reserve official Logan stated that it is taking too long for inflation to return to the 2% target. ChainCatcher is a news platform focused on blockchain and cryptocurrency, while Jin10 is a real-time financial market data provider.
The Federal Reserve has used the 2% personal consumption expenditures (PCE) inflation as its long-term price stability target for over a decade, following its formal adoption in a January 2012 FOMC statement to anchor monetary policy. Despite the most aggressive rate-hiking cycle in decades since 2022, with cumulative rate increases exceeding 5 percentage points, inflation remains above the target. Recent data shows the core PCE index still running at around 3% year-over-year, indicating sticky price pressures. Logan's comment suggests that the road back to 2% remains lengthy. The PCE measure is the Fed's preferred inflation gauge, as it better captures shifts in consumer spending patterns.