Fed Tightens Again in a Bet on Economic Momentum
The Federal Reserve Open Market Committee raised its target for the federal-funds rate to 1.5%-1.75%, in the belief that momentum in the economy will continue to push inflation closer to its 2% objective over the months to come. However, the central bank noted that inflation remained below 2% over the past 12 months in spite of job gains and a low unemployment rate, and that forward-looking market inflation expectations remain modest. The Fed also noted that growth in both household spending and...
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