Inflation & Prices
Lingering Inflation Risks Keep Fed Officials in Wait-and-See Mode on Rate Cuts
- Policymakers flag global tensions, easing financial conditions
- Officials worry inflation will settle above their 2% goal
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The Federal Reserve entered 2024 within spitting distance of its inflation goal. But that’s not quite close enough for policymakers.
The risk that inflation could remain stuck above their 2% target is guiding Fed officials’ preference to keep interest rates where they are for now, even as investors have clamored for cuts.