U.S. Inflation Slows but Stays Above Fed Target; Slower Growth May Be Needed

U.S. inflation has cooled from last year but is still above the Fed's 2% target. Further slowing of economic growth and job market may be needed.

The economy has proven resilient, exceeding expectations and avoiding recession predicted for this year.

Long-term interest rates have risen, which combined with Fed hikes could help slow growth and cool inflation.

Wage growth has slowed recently, a trend that could keep inflation contained if it continues.

Fed says interest rates may not need to be raised further soon, but will remain high for an extended period to ensure return to 2% inflation target.