The Fed Is Split on This Crucial Economic Question, March Minutes Show

Federal Reserve officials seemed evenly split at their March meeting on the key question of whether the recent pickup in core inflation would prove persistent, according to minutes of the meeting released Wednesday.

So-called core inflation refers to prices excluding gasoline and food. While the Federal Reserve targets inflation with those baked in, it looks to the core measure of inflation as a gauge of where prices will be in the future. And the core PCE price index has risen substantially in recent months.

“Some” Fed officials saw the increase as consistent with a firming trend on inflation. At the same time, “some” others expressed the view that the increase in price pressures were unlikely to be sustained.

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