Economics

Inflation Debate Grips Fed as Yellen Exits: Decision-Day Guide

Stronger economy could lead to hawkish tilt in FOMC statement
January meeting sets stage for Powell to hike rates in March

Ebrahim Rahbari, Citigroup head of global macroeconomics, says upside risks to inflation are worrying central banks.(Source: Bloomberg)

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By Steve Matthews

January 31, 2018 at 5:00 AM UTC

This article is for subscribers only.

As Janet Yellen prepares to hand over the leadership of the Federal Reserve to Jerome Powell, the central bank is gripped by the same issue that’s marked her four-year term as chair: puzzlingly low inflation.

The rate-setting Federal Open Market Committee is likely to maintain the range of its benchmark lending rate at 1.25 percent to 1.5 percent at the conclusion of a two-day meeting in Washington on Wednesday. It releases a statement at 2 p.m. and no press conference is scheduled to follow.