Fed policymakers in tug-of-war on inflation, instability
/ Reuters Business News
That is a change from years past, where high unemployment was at the top of the Federal Reserve's worry list for the U.S. economy. But with the U.S. unemployment rate now at 4.3 percent, most Fed officials are now convinced that nearly all Americans who want jobs can and do get them.
That is a main reason the Fed last week raised its target range for short-term interest rates for the second time this year, even though recent inflation readings have drifted away from the Fed's 2-percent target, confounding expectations based on history and theory.
Fed Chair Janet Yellen expressed confidence inflation would eventually perk up, but some policymakers cast doubt.
Chicago Federal Reserve Bank President Charles Evans on Tuesday became the latest to express worries on that front, saying he is increasingly concerned that a recent softness in inflation is a sign the U.S. central bank will struggle to get price pressures back to its 2 percent objective.