Rob Wile is a breaking business news reporter for NBC News Digital.
The Federal Reserve is widely expected to keep its key federal funds interest rate unchanged at about 5.5% this week, as it continues to fight persistent inflation in the economy. That rate has been in place since last July, and has led to a surge in the cost of borrowing. The Fed's actions are part of a long-standing monetary practice, with a simple goal.
Analysts at Bankrate believe inflation remains even more entrenched than it might seem — and that as a result, the Fed will only be able to make two interest-rate cuts this year as it aims for its 2% goal. As of February, inflation was at 3.2%. 'There’s a feeling that the last mile might be more difficult for the Fed,' said Bankrate senior policy analyst Ted Rossman. The Fed does have two key factors in its favor that economists say are likely to keep inflation relatively subdued.
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