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Federal Reserve officials forecast that inflation will remain higher than previously expected, with price growth remaining above their 2% target throughout next year, according to their updated Summary of Economic Projections released Wednesday.

Inflation, as measured by the personal consumption expenditures price index, is now projected to end 2025 at an annual rate of 2.5%, higher than officials’ September estimate for a 2.1% pace.

Fed Chair Jerome Powell said at a news conference Wednesday that while policymakers’ earlier inflation projection had “kind of fallen apart” toward the end of the year, officials were “not going to settle” for failing to reach that 2% target.

“We certainly have every intention and expectation that we’ll get inflation back sustainably to 2%,” he said.

And although the process has taken longer than expected, the central bank has “made a great deal of progress,” Powell added.