The Federal Reserve is facing an increasingly uncertain path forward with inflation still lingering after two years of elevated rates
after two years of elevated rates with an incoming Trump administration whose economic pitches have spurred concerns about pushing prices back upward.
Fed chair Jerome Powell said last week that the central bank is being careful not to reduce rates too quickly with a mostly healthy economy. The economy grew at a robust 2.8% pace in the third quarter, unemployment is historically low, and consumers have continued to spend despite frustrations over prices, keeping the U.S. on track despite the higher rate environment.
The slight bump in inflation in November isn’t expected to knock the central bank off reducing interest rates during its meeting next week but it has made some economists question whether a cut is guaranteed. “While the Fed would like to cut interest rates, if they really want to signal seriousness about inflation and they want to build up that credibility, they're going to need as a hedge against a big-spending administration. They might be better served by staying put on interest rates,” said Ryan Young, a senior fellow at the Competitive Enterprise Institute.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Sticky inflation, Trump bring obstacles to Fed's path to lowering ratesThe Federal Reserve is facing an increasingly uncertain path forward with inflation still lingering after two years of elevated rates
Read more »
Sticky inflation, Trump bring obstacles to Fed's path to lowering ratesThe Federal Reserve is facing an increasingly uncertain path forward with inflation still lingering after two years of elevated rates
Read more »
Sticky inflation, Trump bring obstacles to Fed's path to lowering ratesThe Federal Reserve is facing an increasingly uncertain path forward with inflation still lingering after two years of elevated rates
Read more »
Sticky inflation, Trump bring obstacles to Fed's path to lowering ratesThe Federal Reserve is facing an increasingly uncertain path forward with inflation still lingering after two years of elevated rates
Read more »
CPI Preview: Could Sticky Inflation Cause the Fed to Rethink Rate Cuts?Market Overview Analysis by Investing.com (Jesse Cohen) covering: Nasdaq 100, NVIDIA Corporation, Cincinnati Financial Corporation, Booking Holdings Inc. Read Investing.com (Jesse Cohen)'s latest article on Investing.com
Read more »
USD: Sticky inflation to keep market guessing over Fed rate cutsThe US Dollar (USD ) remained reasonably bid on Tuesday as markets digested the US tariff news, while news of a peace deal between Israel and Hezbollah has not affected the market much.
Read more »