U.S. inflation, Fed's key interest rate to stay high this year: survey

NEW YORK, May 23 (Xinhua) -- The median forecast for U.S. inflation stands at an average of 4.2 percent this year, up from a previous 3.9-percent forecast in February, a group of business economists predicted in a survey released Monday.

According to the survey conducted by the National Association for Business Economics, 45 economists have predicted a forecast figure that exceeds the Federal Reserve's inflation target of 2 percent.

At the same time, the persistence of high inflation is likely the main reason the economists expect the Fed to keep its key rate at its current level of roughly 5.1 percent, its highest point in 16 years, the survey said.

That is a sign that the economists don't expect the Fed to cut rates later this year, unlike many Wall Street investors who have priced in rate cuts, AP reported.