Sluggish inflation has made the Federal Reserve’s efforts to get interest rates back to normal levels a lot harder.
The Fed is expected to raise interest rates Wednesday by a quarter point, and it has forecast another rate hike for this year. But the recent slowdown in inflation has become a red flag for markets, which doubt the Fed’s ability to hike a second time before year end.
The Federal Open Market Committee is expected to raise the fed funds target rate to 1 to 1.25 percent.
Inflation will already be top of mind for markets Wednesday, even before the Fed’s 2 p.m. statement. The consumer price index is released at 8:30 a.m. ET, as is the latest retail sales report. That CPI report is expected to show that May core inflation was running at an annual rate of 1.9…Read More & View Videos