The Federal Reserve entered 2024 within spitting distance of its inflation goal. But that’s not quite close enough for policymakers.
The risk that inflation could remain stuck above their 2% target is guiding Fed officials’ preference to keep interest rates where they are for now, even as investors have clamored for cuts.
Fresh inflation data released Tuesday underscored their reason for caution: Consumer prices excluding food and energy rose more than expected in January, a sign that businesses still have the ability to raise prices, especially in the services sector. If officials were l