Inflation

Federal Reserve officials deem another increase in their benchmark short-term interest rate appropriate even as worries over a longer lasting shortfall in inflation deepened.

Federal Reserve Chair Janet Yellen cautioned that raising interest rates too quickly risked stranding inflation below the U.S. central bank’s 2% target.

A global perspective must be used to prepare for the next recession, even though it’s not on the near horizon, Federal Reserve Bank of San Francisco President John Williams said Thursday.

Federal Reserve officials are pushing for a potentially radical revamp of the playbook for guiding U.S. monetary policy, hoping to seize a moment of economic calm and leadership change to prepare for the next storm.

Gradually raising interest rates remains appropriate, including a 25 basis point increase in December, Federal Reserve Bank of Boston President Eric Rosengren said.

The consumer price index Consumer Price Index came in exactly as expected, with a 0.1% rise for the overall reading and a 0.2% gain for the core reading.

With the underlying growth potential of the economy hard to pin down, targeting a price level could be effective, Federal Reserve Bank of San Francisco President John Williams argues.

Investors now see roughly an 80% chance of a hike at the Fed’s gathering in December.

Federal Reserve Vice Chairman Stanley Fischer continues to expect a tightening U.S. labor market to lift wages and prices.

Federal Reserve Bank of Boston President Eric Rosengren said the central bank should raise rates in a “regular and gradual” way.