A growing number of Federal Reserve officials don't see a return to the ultra-low interest rates that prevailed before the COVID-19 pandemic due to everything from ballooning federal deficits to demand for investments in green energy, artificial intelligence and domestic manufacturing.
The U.S. economy has held up remarkably well in the face of the stiffest rate hikes in a generation, with unemployment low and growth - until recently - mostly above trend. Meanwhile progress on returning inflation to the Fed's 2% target has stalled out this year after rapid gains last year, leading some to wonder whether something has changed that could require a generally higher level of interest rates to keep price increases in check.
