Powell signals Fed's focus is back on inflation

FEDERAL RESERVE OFFICIALS capped 2024 with a third-straight interest-rate cut and a strong signal that inflation concerns are back in the fore.

- CRAIG TORRES

Chair Jerome Powell put it plainly: The central bank's year-end inflation projection has "kind of fallen apart."

Officials now see it taking much longer for inflation to reach their 2% target, which they have missed for nearly four years. As a result, they dialed back expectations for rate cuts next year, and Powell made clear that any adjustments will hinge on further progress in cooling price increases.