FEDERAL RESERVE OFFICIALS capped 2024 with a third-straight interest-rate cut and a strong signal that inflation concerns are back in the fore. Chair Jerome Powell put it plainly: The central bank's year-end inflation projection has "kind of fallen apart."
Officials now see it taking much longer for inflation to reach their 2% target, which they have missed for nearly four years. As a result, they dialed back expectations for rate cuts next year, and Powell made clear that any adjustments will hinge on further progress in cooling price increases.
The stronger focus on inflation is a significant shift in strategy from September when officials saw labor market softening as the greater risk. But recent data have reignited concerns about inflation stalling above the central bank's 2% goal - as have policy proposals from President-elect Donald Trump.
This story is from the December 20, 2024 edition of Financial Express Bengaluru.
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This story is from the December 20, 2024 edition of Financial Express Bengaluru.
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