The decline in inflation in the United States in June is encouraging for the Federal Reserve
The inflation rate in the United States dropped to 3% in June, which is an encouraging sign for the Federal Reserve. The Fed is discussing the pace of rate cuts and looking for evidence of easing price pressures. Despite market expectations of up to 7 rate cuts by the Fed in 2024, the benchmark interest rate is currently maintained in the range of 5.25-5.5%. Chairman Powell stated that the labor market is cooling down, and maintaining high rates for a long time will squeeze the economy. Decisions will be made at subsequent meetings
According to the Financial Times, the inflation rate in the United States dropped to 3% in June, which is an encouraging sign for the Federal Reserve. Currently, the Fed is discussing how quickly to lower interest rates from the 23-year high. The June CPI index rose by less than economists' expectations of 3.1% year-on-year, compared to 3.3% in May. At the same time, the Fed is looking for further evidence that US price pressures are easing. Despite market expectations earlier this year that the Fed would cut rates up to 7 times in 2024, the Fed is keeping the benchmark interest rate in the range of 5.25-5.5%, the highest level since 2001. However, Fed Chairman Powell told US lawmakers this week that the labor market is showing signs of cooling, and officials are concerned that keeping rates too high for too long will squeeze the economy. He added that decisions will be made on a "meeting-by-meeting" basis