S&P 500 and Nasdaq reach record highs as Powell discusses inflation progress

From Yahoo Finance: 2024-07-02 16:17:47

Federal Reserve Chair Jerome Powell acknowledged that the Fed’s preferred inflation gauge showed prices rose at their slowest pace in over three years in May. Powell mentioned that recent data has been moving in the right direction, signaling cautious optimism. Even though the ‘core’ PCE index rose 2.6% in May, down from 2.8% in April, Powell emphasized the need for more evidence before considering interest rate cuts. The reading supported expectations for rate cuts later in the year, but the Fed is unlikely to cut rates at the upcoming July meeting. Powell highlighted the importance of patience and more evidence to ensure sustainable progress towards the 2% inflation target.



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