The Federal Reserve will make only modest progress in its fight against inflation for the rest of this year, even while keeping its benchmark interest rate at a 16-year high, a group of business economists predict in a survey released this morning.
Fewer Americans filed unemployment claims last week after a previous spike that some took as a sign that higher interest rates were finally cooling the labor market.
Consumer prices in the U.S. rose again in April, and measures of underlying inflation stayed high, a sign that further declines in inflation are likely to be slow and bumpy.
America’s employers added a healthy 253,000 jobs in April, evidence of a labor market that still shows surprising resilience despite rising interest rates.
The Federal Reserve reinforced its fight against high inflation today by raising its key interest rate by a quarter-point to the highest level in 16 years.