Federal Reserve meeting focuses on inflation and interest rates

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The Federal Reserve’s next meeting on interest rates and inflation begins Tuesday. The agency is expected to maintain its current benchmark rate over a lack of progress with inflation. According to the latest data, inflation has been slowing but price growth, excluding the fluctuating prices of food and fuel, has dipped only slightly since the beginning of the year- from 2.9 to 2.8%. Inflation remains uncomfortably high as the Fed aims to bring that number down to its 2% goal.It’s unclear whether current interest rates have done enough to put downward pressure on inflation, leaving economists with questions on whether the Fed should cut rates this year as originally planned.”Have they raised rates far enough to really knock that on the head, and how long are rates going to have to stay high in order to be sure that inflation will return to the target?” Steve Hamilton, an economist at George Washington University said.Another inflation report is out tomorrow shortly before the Fed’s announcement on interest rates.

The Federal Reserve’s next meeting on interest rates and inflation begins Tuesday.

The agency is expected to maintain its current benchmark rate over a lack of progress with inflation.

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According to the latest data, inflation has been slowing but price growth, excluding the fluctuating prices of food and fuel, has dipped only slightly since the beginning of the year- from 2.9 to 2.8%.

Inflation remains uncomfortably high as the Fed aims to bring that number down to its 2% goal.

It’s unclear whether current interest rates have done enough to put downward pressure on inflation, leaving economists with questions on whether the Fed should cut rates this year as originally planned.

“Have they raised rates far enough to really knock that on the head, and how long are rates going to have to stay high in order to be sure that inflation will return to the target?” Steve Hamilton, an economist at George Washington University said.

Another inflation report is out tomorrow shortly before the Fed’s announcement on interest rates.