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MNI INTERVIEW: Fed Could Hold Longer On 'Entrenched' Inflation

(MNI) WASHINGTON

Former Fed Board economist Andrew Levin thinks service and shelter inflation will prove more stubborn than policymakers forecast.

Persistent inflation in services and housing could force Federal Reserve officials to push off the start of interest rate cuts until later in the year, former Fed board economist Andrew Levin told MNI.

“Supercore prices in the service sector and rental rates in the housing market are leveling off at levels that are not consistent with the Fed’s inflation target,” Levin said in an interview.

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Persistent inflation in services and housing could force Federal Reserve officials to push off the start of interest rate cuts until later in the year, former Fed board economist Andrew Levin told MNI.

“Supercore prices in the service sector and rental rates in the housing market are leveling off at levels that are not consistent with the Fed’s inflation target,” Levin said in an interview.

Keep reading...Show less