The Consumer Price Index rose 3 percent in June on an annual basis, a sharper slowdown in inflation than economists had expected. On a monthly basis, prices dropped 0.1 percent.

The Consumer Price Index rose 3 percent in June on an annual basis, a sharper slowdown in inflation than economists had expected. On a monthly basis, prices dropped 0.1 percent.

  • Coffee AddictOPMEnglish
    2•5 months ago

    In all, the very cool inflation data provided clear evidence that inflation is slowing meaningfully, exactly the kind of progress that Fed officials have been hoping to see as they contemplate when to begin cutting interest rates. […]

    While policymakers came into 2024 expecting to cut them several times, a spate of stubborn inflation numbers early in the year have kept them on hold. But now, evidence is mounting that inflation is truly coming under control, which could pave the way for a rate cut in the coming months.

    I’ll take whatever good news we can get. If the Fed can cut interest rates before the election, then that will help democrats chances in stopping Trump in November.

    I will say the Biden Admin and Powell have navigated lowering inflation from an extremely high 9% two years ago to 3% now. The last time inflation got that bad, it took a recession to bring it down to normal levels - and that happened during Reagan’s presidency.

    But the Biden Admin & Powell did it without totally crashing the economy, which is impressive.