All eyes are on Fed Chair Janet Yellen as she arrives at the central bank ahead of an expected announcement on interest rates. Rough Cut (no reporter narration).
ROUGH CUT (NO REPORTER NARRATION). STORY: All eyes are on Federal Reserve Chair Janet Yellen as she arrives at the U.S. Federal Reserve ahead of an expected announcement on interest rate policy. Earlier, the Labor Department reported a 0.2 percent gain in the so-called Core Consumer Price Index, which could give the Federal Reserve more confidence to raise interest rates on Wednesday, There is optimism that tightening labor market conditions, characterized by a jobless rate now in a range that some Fed officials view as consistent with full employment, and strong domestic demand will put upward pressure on wages and drive inflation toward its target. Inflation is also seen heading higher in 2016 as the effects of last year's sharp drop in oil prices fade. The dollar's pace of appreciation is also expected to slow, which could ease some of the pressure on commodity prices.