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Some at Fed may pencil in a hike. Most won't. Warsh is a question mark
A majority of Federal Reserve policymakers now feel they will need to keep U.S. short-term borrowing costs on hold all year, projections due out on Wednesday are expected to show, with a small number seen penciling in a rate hike to stop a spike in inflation from getting entrenched in the economy. The anticipated adjustments to the Fed's so-called dot plot would mark a hawkish shift from where Fed officials were just three months ago. They also present a particularly sticky communications challenge for new Fed Chairman Kevin Warsh, as stronger-than-expected job gains in recent months and inflation on the rise since ... (full story)
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