Timiraos, Fed reporter at the Wall Street Journal:
-
Strong hiring and the prospect of inflation stabilizing closer to 3% than the Fed’s 2% target could call into question the central bank’s ability to cut rates much later in the year without evidence of a more marked slowdown in the economy.
-
A third straight month in which prices were higher than expected likely sends officials back into a difficult waiting situation where they wait several more months for either better inflation data or the type of obvious economic weakness that they hoped to avoid.
-
“It definitely makes them less confident that inflation will return to the 2% target,” said Alan Detmeister, an economist at UBS who headed the Fed’s inflation forecasting division.
The newspaper is closed
This article was written by Eamonn Sheridan at www.forexlive.com.
cnbctv18-forexlive