Reported over 1 year ago
A recent inflation report shows a slower pace of price increases in May, supporting the possibility of interest rate cuts by the Federal Reserve later in the year. Despite positive indicators of easing inflation, the Fed is unlikely to cut rates at its upcoming meeting in July and may wait until more evidence suggests inflation is sustainably declining towards its 2% target. The Personal Consumption Expenditures (PCE) index, excluding food and energy prices, rose 2.6% in May, signaling the slowest annual gain in over three years. Economists predict the Fed may consider a rate cut as early as September, following a potential decline in core PCE inflation and consumer spending amidst higher rates. Fed officials like Atlanta Fed president Raphael Bostic and Fed Governor Michelle Bowman have varying views on the timing and necessity of rate cuts, with Bostic leaning towards a rate cut in the fourth quarter and Bowman expressing concerns about elevated inflation levels and potential risks to inflation.
Source: YAHOO