Advertisement Continue reading the main storyThe differences are narrow because Fed officials remain confident in the strength of the economy. Janet L. Yellen, the Fed’s chairwoman, and other Fed officials have made clear they are committed to steadily reducing the Fed’s support for economic growth after years of hesitation. Some Fed officials are worried that investors are not responding to the recent rate increases. As the Fed raises rates, lenders have reduced borrowing costs, the opposite of the effect intended by the central bank. One reason for this optimism is that Fed officials attribute the recent sluggishness to lower prices on a few kinds of products, including wireless telephone services and prescription drugs.

Source: New York Times July 05, 2017 18:25 UTC