Instead, price growth may actually be stuck at its current rate — not super fast, but not slow enough to ease concerns among economic policymakers that consumers won’t continue to experience an uncomfortable pace of price growth.
That stalled progress would be worrisome for the Federal Reserve, which had hoped to continue to bring down interest rates as the new year began in tandem with slower price growth.
Now, analysts are saying it’s highly likely the Fed will pause its rate-reduction plans in January.
More generally, the economy, to a great degree, remains propped up by upper-middle-class and high-net-worth individuals who are more resistant to — and, by way of their spending, can sometimes accelerate — price growth.
What’s more, it’s not even clear that interest rates in the rest of the economy are substantially responding to the rate cuts the Fed has enacted.
Persons:
Dow Jones, Donald Trump, Trump, Ian Shepherdson, “, Mark Zandi, ” Zandi, it’s, ”
Organizations:
of Labor Statistics, Federal Reserve, NBC, Federal, Moody’s
Locations:
U.S, Wall