Fed Officials See Inflation Worsening, Question Quick Cool Down

• Fed officials argued inflation was worsening even before latest hot read • Price increases in Jan/Feb did not increase confidence that inflation was falling to 2% target • Some officials disputed that high early-year price rises were one-time increases
• Core consumer price inflation rose 0.4% from Feb to March, faster than Fed target • Leveling-off of inflation makes 3 projected quarter-point rate cuts less likely