"Fed Officials Concerned Over Stalling Inflation Progress, Meeting Minutes Reveal"

Federal Reserve officials expressed concerns about inflation not moving sustainably down to the 2% target, despite strong economic momentum, and hesitated to reduce interest rates amid fears of stoking higher inflation. Grocery prices surged 21% in the last three years, surpassing overall inflation, and the latest consumer price index data showed a 3.5% rise in March, the highest level since September 2023, indicating persistent price pressures within the economy. Policymakers projected three interest rate cuts this year, but market pricing now indicates the Fed may only cut rates twice, with the first reduction not expected until September.