The next Federal Open Market Committee (FOMC) policy meeting is more than a month away, but U.S. central bank officials are providing insights into the Federal Reserve’s plans, inflation, and the broader economy.
The message from multiple officials on Wednesday was that while a recession is a risk, slashing inflation to its pre-pandemic level is the chief priority for the Fed.
Minneapolis Fed Bank President Neel Kashkari acknowledged that the Fed reacted to inflation too slowly last year because policymakers believed higher prices would be transitory. He now thinks that the central bank needs to respond with urgency because 40-year high inflation is spreading throughout the national economy. …
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