Fed Faces Challenges from 'Sticky Prices' in Services Sector

Reported about 5 hours ago

The Federal Reserve is grappling with 'sticky prices' in the services sector, which are approximately 1-1.5% higher than pre-pandemic levels. Former adviser Andrew Levin highlights that this issue complicates the Fed's efforts to reduce inflation and may necessitate a sustained moderately tight monetary policy. As President Trump's tariffs add to the challenges, the Fed's focus remains on ensuring inflation returns to target.

Source: YAHOO

View details

You may also interested in these wikis

Back to all Wikis