US inflation still on 'bumpy' path to target: Fed official

Washington: The US remains on track to hit its long term target of two percent inflation despite a recent bump in the road, a senior Federal Reserve...

Washington: The US remains on track to hit its long-term target of two percent inflation despite a recent "bump" in the road, a senior Federal Reserve official said Monday.

The US central bank has been on a journey since the Covid-19 pandemic, hiking interest rates to a two-decade high and holding them there in order to tame a surge in inflation, before starting to dial back rates in recent months.

On paper, the US economy now looks pretty healthy -- with robust economic growth, an unemployment rate still relatively close to historic lows, and inflation at 2.3 percent in October, according to the Fed's favored measure.

But as close as inflation is to two percent, it has so far failed to hit that target, held high by several factors including the cost of housing and accommodation, and actually ticked up slightly in October.

In an essay published Monday, Atlanta Fed President Raphael Bostic said the Fed remained on track.