Powell: Oil shock 'part of' higher inflation projection for 2026

• The oil shock is identified as a significant factor contributing to the higher inflation projection for 2026.
• The impact of the oil shock is expected to be seen in both headline and core inflation measures.
• Slow progress in reducing inflation for core goods and the lingering effects of tariffs are also cited as reasons for the elevated inflation outlook.

Federal Reserve Chair Jerome Powell explains the factors contributing to the higher inflation projection for 2026. He states that the oil shock is 'part of' this projection, affecting both headline and core inflation. Powell also notes slow progress on core goods and tariffs as additional contributing factors, indicating that these issues take time to resolve through the economy.