That final word is also likely the final hurdle between policymakers and interest rate cuts which likely won't begin until "elevated" is dropped from the Fed's policy statement in favor of a new phrase acknowledging inflation was closing in on the central bank's 2% target. With inflation now below the level that caused the Fed to call it "elevated" in the first place, a turn in the policy statement could come as soon as the Fed's March 19-20 meeting and open the door to rate cuts beginning after that. Assuming inflation continues toward a lower path policymakers could "just change the sentence - 'inflation has eased closer toward goal,'" said Dreyfus & Mellon Chief Economist Vincent Reinhart, who helped draft central bank policy statements in his former role as head of the Fed's monetary affairs division.
As they navigated the
onset of the COVID-19 pandemic Federal Reserve officials had a
steady progression of descriptions for inflation, first saying
it remained too low, then calling its rise. -February 08, 2024 at 12:52 pm EST
- MarketScreener
WASHINGTON — Higher energy and housing prices boosted overall U.S. inflation in December, a sign that the Federal Reserve s drive to slow inflation to its 2% target will likely remain
WASHINGTON — Higher energy and housing prices boosted overall U.S. inflation in December, a sign that the Federal Reserve’s drive to slow inflation to its 2% target will likely remain
From housing to energy to food, US inflation picks up, though some costs rise only mildly whsv.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from whsv.com Daily Mail and Mail on Sunday newspapers.