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Central Banks

Fed Minutes to Reveal Source of Inflation Angst Pushing Up Rates

  • Powell tied pessimism on outlook for prices to labor strength
  • Record of December Fed meeting due out Wednesday in Washington
Bloomberg business news
Bill Dudley Says 'Fed-Induced' Recession Unlikely to Be Deep

The Federal Reserve is set to shed more light on why it’s worried that strong inflation may linger as the US economy moves into the new year.

At the conclusion of the Dec. 13-14 meeting of the Federal Open Market Committee, policymakers published new projections showing they expected inflation would end 2023 higher than they previously thought. That led to surprisingly widespread support in the projections for the notion that interest rates would need to rise above 5% in 2023.