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Why the FOMC Isn’t Confident about Sustained Inflation Growth

Ricky Cove
Why the FOMC Isn’t Confident about Sustained Inflation Growth

The FOMC’s May meeting minutes indicated that some of its members had turned bearish on inflation (TIP). This information played a major role in changing investor’s assessment of the Fed’s plan for future rate hikes. If members feel that inflation can’t sustain above 2%, there’s the chance that they could limit the number of rate hikes going forward.