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The Fed: What do they do now?

The Federal Reserve has been watching the Jobs numbers closely. The Fed has indicated plans to raise its benchmark interest rate target another quarter-point this year, but could be held back due to weak inflation. Specifically, policymakers have been looking for signs of accelerated wage growth, which has been stuck around 2.5 percent for most of the year.

Prolonged economic growth and a tight labor market has spurred the Federal Reserve to raise interest rates gradually. A recent dropoff in inflation might prompt the central bank to go slower, but not if hiring maintains its current pace.

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