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The Wall Street Journal reports Inflation Remains Below Fed's Target as Officials Meet to Set Policy.
Federal Reserve officials begin their two-day policy meeting Tuesday amid fresh signs that inflation remains lower than they would like, despite strong economic growth.They have penciled in a rate rise before year's end, but some officials have said they want to see evidence that inflation is rising toward their 2% target before approving such a move.Other officials say they should continue raising rates very gradually because they expect inflation to pick up eventually and they don't want to let the economy overheat. Other recent data show household spending, supported by a strong labor market and upbeat consumer sentiment, is fueling solid growth.Consumer spending rose a seasonally adjusted 1% in September from August, the largest monthly gain in eight years, the Commerce Department said Monday. Again, the recent hurricanes played a role, driving a 3.2% increase in durable goods—long-lasting products like cars and refrigerators—as many households replaced hurricane-damaged property.