Even as inflation has slowed from last summer's 40-year highs, Fed officials have been reluctant to declare their job finished until there are clearer signs the economy is slowing.
If, as some argue, the interest rate that neither stimulates nor restrains the economy has shifted higher, it means Fed policy is putting less pressure on the economy than expected.
Partly to let its policies play out, the Fed is widely expected to leave interest rates on hold at its Sept. 19-20 meeting.
Will the bulk of policymakers feel higher rates will be needed to finish the job?
"I do expect some rise in unemployment will be required to get underlying inflation into a zone where the Fed is comfortable."
Persons:
Chris Albrecht, what's, Thomas Barkin, Barkin, Charles Evans, Richard Clarida, Howard Schneider, Dan Burns, Paul Simao
Organizations:
Caesars, Richmond Fed, Reuters, Fed, Chicago Fed, Workers, U.S, Thomson
Locations:
DANVILLE, Virginia, Danville , Virginia, Caesars Virginia, Danville, U.S, Jackson Hole , Wyoming