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The Federal Reserve's favorite measure of inflation rose at the slowest pace in more than a year while consumer spending picked up.
President Donald Trump often blames his monetary policy frustrations on Fed Chairman Jerome Powell, but rates are determined by a group of central bankers.
Federal Reserve officials expect some aspects of the economy to improve in the coming months and could still increase interest rates later in the year, minutes from its latest meeting revealed Wednesday.
Economists say that Trump's potential Fed nominees could hinder the central bank's ability to respond to a recession.
The Federal Reserve is widely expected to hold interest rates steady on Wednesday and to signal further that it may be a while before another hike.
Expectations for a rate hike this year have fallen below those for a cut, according to Bloomberg data.
"The prospect of low rates for longer is music to the ears of equities, as firms benefit from lower borrowing costs," said Jasper Lawler at London Capital Group.
Communications from Fed Reserve officials were among a string of factors behind the gloomy mood on Wall Street at the end of 2018.
All eyes have been on inflation following the Fed’s policy reversal last month, and the latest data suggests the central bank's approach won't change.
From tweetstorms to questions on whether Trump may fire chairman Jerome Powell, anger over rising interest rates has long been apparent in the Oval Office.