US CPI is still above target

avatar

US CPI for the year ending June came in at 3%. down from 3.3% for May. Here is the chart:


source

The markets are excited because they think this means an interest rate cut by September.

But the Fed's target for inflation is 2%, and there is no sign they'll achieve it by September. Indeed inflation has been in the 3% to 3.5% range for nine months. Far from cutting rates, the Fed might need to hike to get inflation down to 2% (though they won't hike till after the election).

The alternative is for them to accept inflation at around 3% - but that requires them to hold rates where they are. Any cut will send inflation higher.

economy archon neoxian cent pob hive-engine leofinance bpc
0
0
0.000
10 comments
avatar

Thank you for your witness vote!
Have a !BEER on me!
To Opt-Out of my witness beer program just comment STOP below

0
0
0.000
Reply
avatar

Thank you for your witness vote!
Have a !BEER on me!
To Opt-Out of my witness beer program just comment STOP below

0
0
0.000
Reply
avatar

Congratulations @rose98734! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)

You got more than 700 replies.
Your next target is to reach 800 replies.

You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

0
0
0.000
Reply
avatar

Thank you for your witness vote!
Have a !BEER on me!
To Opt-Out of my witness beer program just comment STOP below

0
0
0.000
Reply
avatar

Thank you for your witness vote!
Have a !BEER on me!
To Opt-Out of my witness beer program just comment STOP below

0
0
0.000
Reply