Fed officials worried inflation progress is stalling, meeting minutes show
Inflation is falling but buying food can still be expensive. Grocery prices surged 21% in the last three years, surpassing the overall 18% pace of inflation during that same time period, according to the Bureau of Labor Statistics.
Federal Reserve officials raised concerns during their March policy-setting meeting that price pressures within the economy were heating up again, even before the government reported that inflation accelerated again last month.
Minutes from the U.S. central bank's March meeting released Wednesday showed that officials remain attentive to inflation risks, with some concerned that progress toward the Fed's 2% target could stall.
«Participants generally noted their uncertainty about the persistence of high inflation and expressed the view that recent data had not increased their confidence that inflation was moving sustainably down to 2 percent,» the report said.
WHY ARE GROCERIES STILL SO EXPENSIVE?
While Fed officials reiterated that interest rates are likely at their peak, they also expressed hesitance to begin reducing rates amid fears that it could stoke higher inflation.
Fed Chair Jerome Powell speaks during a news conference in Washington, D.C., on March 22, 2023. (Al Drago/Bloomberg via / Getty Images)
«Participants noted indicators pointing to strong economic momentum and disappointing readings on inflation in recent months and commented that they did not expect it would be appropriate to reduce the target range for the federal funds rate until they had gained greater confidence that inflation was moving sustainably toward 2 percent,» the minutes said.
JAMIE DIMON WARNS INFLATION, INTEREST RATES MAY REMAIN ELEVATED
Officials voted at the March meeting to hold interest rates steady
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