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Inflation may provide more clues about future rate hikes than the Fed

It may not be the Fed that signals a more aggressive rate hiking scenario Wednesday — it could be the inflation data. The Fed is expected to hike interest rates by a quarter point Wednesday afternoon, and it is likely to sound more upbeat about the economy. Its dual mandate — inflation and employment — have finally both gained traction with the recent signs of rising inflation. The Fed’s preferred inflation measure, the personal consumption expenditures inflation index, still lags CPI but it is moving in the right direction.

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