Reported 2 days ago
The Federal Reserve's recent interest rate cut raises questions about its ability to achieve its 2% inflation target. Economists highlight three main reasons for this challenge: the loss of benefits from core goods deflation, structural labor market changes leading to wage increases, and expected increases in the owner's equivalent rent affecting inflation. Despite tariff discussions, these underlying factors may hinder the Fed's inflation goals, with predictions of rising core inflation.
Source: YAHOO