Jay Powell warned last week that the Federal Reserve’s path to getting US inflation down this year was “probably going to be bumpy”.
But the Fed chair’s prediction of uneven progress became more tangible this week after the release of new batches of data showing the US economy is not cooling off as rapidly as hoped.
The result is that Powell and the rest of the Fed are grappling with a potential new inflection point in the economic outlook that could complicate their task and again wreck their policy plans and expectations.
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