Benchmark
These Inflation Gauges Will Inform the Pace of Future Fed Rate Increases
Here's how to monitor the economy's price pressures
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The Federal Reserve raised interest rates Wednesday for the first time since 2006, turning everyone's attention to how quickly subsequent rate hikes will occur. The best way to gauge that will be to track the progress of inflation.
Consumer price increases have been stubbornly slow over the past few years, consistently coming in below the Fed's 2 percent target. Still, Yellen said at a news conference after the meeting that the committee has "reasonable confidence" that inflation will move up with time as the effects of cheap oil and a strong dollar fade. She added that policy makers will need to see those expectations play out as they decide the timing and size of future rate increases.