How "substantial" was progress for the Fed?

WASHINGTON (Nov 3) - Last December, with COVID-19 vaccinations only just beginning and the pandemic still raging, the U.S. Federal Reserve promised it would continue supporting the recovery with $120 billion in monthly bond purchases until there had been "substantial further progress" in meeting it goals of 2% inflation and maximum employment.

At the end of its November policy meeting on Wednesday the central bank is likely to declare that standard met, clearing the way to trim $120 billion in monthly bond buying and eventually raise interest rates. read more

How substantial has the progress been?

In the case of inflation, probably more than the Fed bargained for. The annual rate of price increases was 1.3%, measured by the Fed's preferred Personal Consumption Expenditures price index, at the time the "substantial further progress" benchmark was set. It has been more than 4% since May.

Reuters