Fed expected to leave rates unchanged next month after soft inflation data
Federal Reserve policymakers are likely to feel little fresh urgency to raise interest rates in September after data on Wednesday showed inflation cooled on a year-over-year basis for a second straight month, but they may take little comfort that monetary policy is tight enough to continue the easing trend. The Consumer Price Index rose 3.4 percent in the 12 months through July, down from 3.5…
Federal Reserve officials are anticipated to maintain current interest rates next month, following recent data indicating a slowdown in inflation, according to a report on Wednesday by the Bureau of Labor Statistics. The Consumer Price Index (CPI) increased by 3.4% over the past year, a slight decrease from the 3.5% rise observed in June. Excluding food and energy prices, the core CPI showed a 2.5% increase year-over-year, matching economists' forecasts.
While the data provided some reassurance, Federal Reserve policymakers may not find solace in the perception that monetary policy has become sufficiently tight to sustain the ongoing easing trend. Omair Sharif, founder of Inflation Insights, noted that a significant drop in hotel prices, likely temporary, largely contributed to the moderation in core inflation. However, other categories of goods experienced price increases compared to June.
Technology prices, influenced by demand for artificial intelligence, saw notable growth. Additionally, gasoline prices experienced a decline, contributing to the overall moderation in inflation rates.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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