May 25, 2017

The Fed wants to raise rates but inflation could stand in the way

As the Fed sets forth a fairly aggressive path toward higher interest rates, one key element could scuttle those plans.

Substantially lower-than-expected inflation would be a significant hurdle for the central bank in its quest to normalize a benchmark rate kept near zero through much of the post-financial crisis economy. The Fed has hiked the rate three times since December 2015 and economists and Wall Street strategists widely expect at least two more moves before the end of 2017. Read more + video.

CNBC

Related,
US Fed to ‘soon’ raise interest rates - AA
Fed Sounds Cautious Note but Doesn’t Deter Forecast of Rate Increase - NY Times

Solid jobs number means Fed on track to raise interest rates and worst fears for the economy ease (video) - CNBC

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