Reported 11 months ago
In preparation for the Federal Reserve's policy decision, investors await May's Consumer Price Index (CPI) report, expecting stable consumer prices with headline inflation around 3.4% and core inflation likely around 3.5%. Bank of America forecasts a decline in energy prices contributing to downward pressure on CPI. While Fed officials anticipate a 'bumpy' path toward their 2% target, the latest economic data suggests a higher-for-longer narrative on interest rates, with expectations of one to two 25-basis-point rate cuts in 2024. The Federal Reserve may cut rates in December 2024 if inflation data does not soften significantly.
Source: YAHOO