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Fed’s Rate Dilemma: Job Gains vs. Low Inflation

Wall Street Journal (02/06/15) Jon Hilsenrath

U.S. Federal Reserve officials are struggling to determine how hot they can let the strengthening labor market run before raising short-term interest rates from near zero. Although the market is showing signs of improvement, low wage growth and inflation remain. Fed chairman Janet Yellen will discuss lifting interest rates with colleagues during a two-day policy meeting starting on March 18. The bank will be “patient” when it comes to raising rates.