Inflation fight divides Fed as prices stay painfully high

Core Viewpoint - The Federal Reserve's recent interest rate cut aims to stimulate a slowing economy, but persistent inflation and rising living costs are limiting its effectiveness for households and businesses [1][2][3]. Group 1: Federal Reserve Actions - The Fed has reduced the benchmark interest rate to a range of 3.75% to 4.00%, making borrowing cheaper to encourage spending and job growth [1][5]. - Despite the rate cut, many Federal Reserve officials express concerns that inflation remains "too high," complicating the path toward the central bank's 2% inflation target [2][3]. Group 2: Economic Context - Rising costs for groceries, rent, and utilities are impacting households, leading to a lack of relief despite the Fed's monetary policy adjustments [2]. - The upcoming Federal Open Market Committee meeting on December 9-10 is expected to involve significant debate regarding the Fed's approach to managing inflation and economic growth [2][4]. Group 3: Data Considerations - The Fed's decision-making is currently hampered by a lack of government data due to a shutdown, forcing reliance on private data sources like ADAP payrolls and state unemployment figures [5][6][9]. - The absence of critical monthly economic indicators presents challenges for the Fed in balancing its dual mandate of price stability and low unemployment [9].