Fed Expected to , Continue Raising Rates , Despite Inflation Easing.
In June, inflation in the United States hit 3%,
the lowest it has reached since March 2021. .
NPR reports that the news could be a sign
that the Federal Reserve's aggressive rate hikes
have made a noticeable impact on the economy.
Despite this, the Fed is expected
to continue taking action.
According to the Labor Department's
July 12 report, consumer prices
rose just 0.2% from May to June.
NPR reports that the rising cost of rent
and clothing was partially offset by dropping
prices for airfare, used cars and furniture.
NPR reports that the rising cost of rent
and clothing was partially offset by dropping
prices for airfare, used cars and furniture.
Last month, gas prices rose 1% but remain
about 26% below what they were last year, when prices reached an all-time high of over $5 per gallon.
In July, grocery prices remained flat, while
the cost of eating at restaurants increased by 0.4%. .
NPR reports that while inflation has slowly
started to ease, it remains higher than
what the Fed is looking to achieve. .
Later this month, the Fed is expected to raise
interest rates to reach its 2% target as
"core inflation" remains high, coming in at 4.8% in June.
Later this month, the Fed is expected to raise
interest rates to reach its 2% target as
"core inflation" remains high, coming in at 4.8% in June.
Interest rates are expected to jump
by a quarter percentage point at
the Fed's upcoming July meeting