The Federal Reserve held its target range for the federal funds rate at 3.5 to 3.75 percent on Wednesday, a decision markets had fully priced in.
At the post-meeting press conference, Chair Jerome Powell reported total PCE prices were expected to have risen 3.5 percent over the 12 months ending in March.
Fed officials must determine the extent to which today’s above-target inflation is due to those supply shocks and whether demand will moderate on its own if the Fed holds rates steady.
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By Bryan Cutsinger
As the Fed prepares for a new chair, the FOMC’s disagreement isn't about the timing of rate changes but fundamentally different views about what causes inflation.
