The Latest Price Data Aren't Doing Fed's Inflation Outlook Any Favors

Costs of health care and financial services are looking weak

Central bankers are pretty close to their goal of full employment, which they estimated last month would be consistent with an unemployment rate of 4.9 percent.

Photographer: Simon Dawson/Bloomberg

Federal Reserve policy makers say they need to be "reasonably confident" inflation will move back to their 2 percent target before raising interest rates. That confidence took a blow on Wednesday.

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