Fed starts policy meeting amid hopes of a smaller rate hike

On one hand, he said officials have to communicate their desire to maintain a “sufficiently restrictive” policy stance, which can help bring inflation down towards policymakers’ two percent target. The goal is to raise the cost of borrowing and cool demand.While consumer inflation has come down from a painful 40-year high, it still stood at 6.5% in December according to Labor Department data.

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