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Quagmire anyone? Fed watchers try to divine a confusing state of play

'...The cost of housing has been driving inflation of late, and Fed officials still expect it to decline and lead headline inflation lower.

But strong data keep undercutting confidence in a fast return of inflation to the Fed's 2% target. Some of the alternate shelter indicators watched by policymakers have shown no clear break yet. ...With inflation running faster-than-expected through the first months of this year, the Fed is "not quite sure it has done enough to derail inflation and cut rates; a further acceleration in inflation would force the Fed to consider additional rate hikes," Swonk wrote.'

Reference: yahoo.com
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