Reported 12 months ago
According to Interactive Brokers senior economist José Torres, with cooling inflation and slow labor market growth, the Federal Reserve is not expected to reach the 2% target until 2026. Torres elaborates on factors affecting the labor market, stock market, and the Fed's future policy decisions, highlighting that core PCE is projected to finish the year around 2.8%, making it difficult for the Fed to cut interest rates in September. Despite two consecutive cool inflation reports, a rise in consumer spending and robust financial markets are expected to increase inflationary pressures later in the year, leading to challenges for Fed's policy decisions.
Source: YAHOO