The Federal Reserve has promised to fight inflation unconditionally while also warning about a rise in inflation expectations in its latest Monetary Policy Report.
The Federal Open Market Committee (FOMC) has been “adjusting” its policies and communications since last fall in response to inflationary pressures, it said in a June 17 report.
“The Committee is acutely aware that high inflation imposes significant hardship, especially on those least able to meet the higher costs of essentials,” it said in the report. “The Committee’s commitment to restoring price stability—which is necessary for sustaining a strong labor market—is unconditional.”
Near-term inflation expectations continue to “rise markedly” while expectations about longer-term inflation “moved up by less.”…