Fed Faces Tricky Balancing Act as Inflation Cools but Prices Remain High
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The Federal Reserve will announce an interest rate decision on Wednesday amid cooling inflation after a series of hikes to fight high prices.
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Inflation has fallen from a 9% peak last summer but remains above the Fed's 2% target. Economists expect rates to remain unchanged.
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The Fed has raised rates at the fastest pace in over 20 years since last year to slow price increases. This has cooled the housing market and business investment.
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Job growth remained robust last month but below the breakneck 2021 pace. However, consumer spending has proven resilient so far.
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Fed Chair Jerome Powell has acknowledged the complexity facing policymakers. He said "getting inflation sustainably down to 2% has a long way to go."