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 Economic Recession and Yen Depreciation Push Japan Behind Germany READ MORE Oil Prices Fall as Global Demand Concerns Eclipse Supply Fears READ MORE U.S. National Debt Soars to Dizzying Heights, Joining Global Debt Pile-Up READ MORE MAS Singapore Gold Vault READ MORE Mortgage Rates Hit 16-Month Low as Fed Signals Rate Cuts READ MORE Add a Comment Cancel replyYour email address will not be published.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