U.S. Inflation Rebound Hasn't Been the Right Kind for This Fed
- Inflation category the Fed can influence has fallen of late
- That means policy makers could have a hard time meeting target
Pantheon's Shepherdson Concerned About Inflation Risk
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This isn’t the inflation rebound that Federal Reserve officials were looking for.
While inflation moved closer to the U.S. central bank’s 2 percent target in September and October following months of lackluster results, its increase reflected gains in goods and services that aren’t necessarily linked to monetary policy, according to new Fed research. That means policy makers could still have a hard time reaching their target, which has remained elusive throughout much of the economic recovery.