Inflation's Persistence Creates Dilemma for Federal Reserve Americans’ intense dislike for inflation poses a significant challenge for the Federal Reserve. Despite improvements, inflation remains above the Fed’s 2% target, with April’s rate at 2.7%. This situation complicates the Fed’s decision-making, as policymakers are expected to keep interest rates steady at their highest level in over two decades. Pre-pandemic, some economists argued for a higher inflation target to avoid the “zero lower bound” problem, where the Fed’s ability to cut rates in a recession is limited, leading to prolonged economic recovery and joblessness. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Investors Hold Breath as CPI and Retail Sales Data Loom READ MORE Central Bankers Plan Record Increase in Gold Reserves, Survey Finds READ MORE U.S. Jobless Claims Hold Steady, Suggesting Strong Labor Market READ MORE Pandora's Eco-Friendly Shift: Committing to 100% Recycled Silver and Gold READ MORE Japan Signals Possible Intervention as Yen Hits 38-Year Low READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment