Survey of economists: Inflation will stay high this year, and so will Fed's key interest rate

File - A help wanted sign is displayed in Deerfield, Ill., on Wednesday, Sept. 21, 2022. On Thursday, the Labor Department reports on the number of people who applied for unemployment benefits last week. WASHINGTON — — The Federal Reserve will make only modest progress in its fight against inflation for the rest of this year, even while keeping its benchmark interest rate at a 16-year high, a group of business economists predict in a survey released Monday.

The National Association for Business Economics' survey of 45 economists found that the median forecast is for inflation to average 4.2% this year, up from a 3.9% forecast in the group's previous survey in February. That is far above the Fed's inflation target of 2%.The persistence of high inflation is likely the main reason the business economists expect the Fed to keep its key rate at its current level of roughly 5.1%, its highest point in 16 years.

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Survey of economists: Inflation will stay high this year, and so will Fed's key interest rateThe Federal Reserve will make only modest progress in its fight against inflation for the rest of this year, even while keeping its benchmark interest rate at a 16-year high, a group of business economists predict in a new survey.
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