Jerome Powell, chairman of the U.S. Federal Reserve, during a news conference following an FOMC meeting in Washington, D.C., on May 3, 2023. Photographer: Al Drago/Bloomberg
As Federal Reserve officials close in on the end of their tightening campaign, the debate is shifting from how high interest rates need to go to how long they should stay elevated. Inflation pressures are easing, which could give policymakers room to keep interest rates at or near current levels for the time being. Still, price gains remain well above the central bank's 2 precent target, making policymakers hesitant to declare victory.
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