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Economics
Central Banks

Fed Is Set to Target Even Higher Rates as Inflation Stays Stubborn

  • Economists say central bank may need to go near or above 5%
  • Fed officials say they want to see core inflation ease
A shopper buys fruit at a farmers market in San Francisco, California.

A shopper buys fruit at a farmers market in San Francisco, California.

Photographer: David Paul Morris/Bloomberg

Federal Reserve officials are likely to once again raise their outlook for how high they’ll have to lift interest rates following the latest bout of bad inflation news. 

Several Fed policymakers have said they want to see a decline in core inflation, a measure excluding volatile food and energy prices, before they slow the pace of rate increases.