Will the Fed Offer Clues About Rate Increases? Here’s What to Watch
[ad_1] Here is what to watch for on Wednesday afternoon. Are officials feeling pressure on inflation? Data released on Monday showed that wages and prices are now growing at 2 percent a year, according to the Fed’s preferred inflation measure, the personal consumption expenditures price index. Excluding volatile food and energy prices, the rate is 1.9 percent. Those levels are important because they indicate inflation is finally reaching the 2 percent level that the Fed has explicitly targeted, after six years of failing to meet that goal . The big question for this meeting is whether officials show new signs that they are worried about inflation climbing further in the months to come, which could mean more rate increases. Several Fed officials have raised concerns in recent weeks about the economy “overheating” and pondered whether the Fed may need to pour some cold water on the economy with higher interest rates. The concern is that if the Fed does not raise interest rates ...