Central Banks
Fed’s Inflation Battle Hinges on Convincing Americans Price Hikes Are Done
- High prices continue to color Americans’ inflation views
- Policymakers have signaled no rush to cut interest rates
People shop at a home improvement store in Brooklyn, New York.
Photographer: Spencer Platt/Getty Images
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The way inflation has fallen toward the Federal Reserve’s goal with little cost to jobs has many convinced the central bank has won the battle. Victory, however, requires persuading people like Steve DelGiorno that price increases are a thing of the past.
DelGiorno’s restaurant group — Crema Concepts LLC in Danville, Virginia — has tried to hold menu prices stable over the past two years despite the higher cost of everything from paper cups to eggs. But he doesn’t think he can hold out much longer.