Inflation risks remain, economy still showing momentum
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The Federal Reserve’s goal is to keep inflation at or under 2%. Annual inflation rose slightly in September, but not as much as economists had expected, providing the central bank with a clear path fo
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Two regional Federal Reserve bank presidents on Friday aired their disagreement with the U.S. central bank's decision to cut interest rates this week, saying the labor market doesn't need the support and inflation is too high to warrant such a move.
Fed Chair Jerome Powell said inflation is not far from the central bank’s 2% goal if higher U.S. tariffs are removed from the equation. “You see goods prices increasing. That’s moving inflation up,” Powell said.
The European Central Bank must be careful in interpreting the inflation projections it will receive in December and avoid erratic policy decisions, according to Governing Council member Martins Kazaks.
Measuring inflation without government data is difficult right now, but there other indicators of where prices are and where they are headed.
The Federal Reserve is widely seen to be willing to cut rates even though inflation is stuck near 3% and not showing much signs of moderating. The reason is that even with the cut, most Fed officials