Inflation Projections and Economic Perspectives

Inflation remains a critical concern for the economy as it shows signs of reducing but still falls short of expectations. The Federal Reserve acknowledged recent progress, reporting core PCE inflation decreasing from nearly 6% to around 2.8%. However, stripping out categories such as shelter reveals even lower inflation rates, suggesting underlying improvements. Economists argue that while inflation is declining, the Fed must tread carefully to avoid focusing solely on this metric at the expense of labor market stability.