The Fed is preparing for the worst. Inflation is said to take longer than expected

More and more voices are leaning towards the view that the recession will not arrive or will be really mild. In general, the mood in the market is positive. But central bank officials themselves are considerably more sceptical.

The Fed says inflation will continue to crush the economy

Two Federal Reserve officials suggested that inflation could persist longer than expected after the central bank's most closely watched inflation gauge rose the most in months.

Cleveland Fed President Loretta Mester and Fed Governor Philip Jefferson said they remain concerned about the inflation rate, which remains well above the Fed's 2 percent annual target.

Inflation does indeed remain above the 2% target... Source

Mester reiterated that while inflation has eased, the overall level remains too high. She pointed to recent Cleveland Fed research and a paper that suggested inflation could be more persistent than currently thought.