Market Analysis: Progress in inflation and economic cooling enough to change the tone of the Federal Reserve
Inflation in the United States slowed down in June, signaling an economic cooling that may prompt the Federal Reserve to change its tone. Economists expect the trend of rising prices to continue. Recent data shows that household consumption, construction spending, and service sector activities are below expectations, leading to an anticipated slowdown in economic growth
On July 11th, according to The Wall Street Journal, the easing of inflation in the United States in June even exceeded economists' expectations, further continuing the recent trend of slowing price increases. There are strong signs that the economy has cooled down, although not enough to trigger serious concerns about an economic recession, but enough to prompt Federal Reserve officials to change their tone. They are increasingly talking about the risks of economic slowdown, despite the inflation rate still being above the 2% target. Recent data on household consumption, construction spending, and service sector activities have all been below economists' expectations. This has lowered expectations for the economic growth rate for the three months ending in June