NEW YORK
(Reuters) - The Federal Reserve expects "very weak" U.S. inflation to
rebound thanks to a slide in the dollar and to a labor market that keeps
getting hotter,
one of the Fed's most influential officials said in comments
that reinforce its gradual policy-tightening plan.
In a speech
on Thursday calling on the United States to do more to curb growing racial inequality
of employment and income, New York Fed President William Dudley suggested the
central bank was on track to raise interest rates once more and begin shedding
some bond holdings this year.
Investors
are somewhat skeptical that the Fed will deliver another rate hike by December,
given that its preferred annual inflation reading in recent months has fallen
to, and remained at, 1.5 percent, which is below a 2-percent target.
0 Comments