The Federal Reserve struggling to keep up with slowing growth, potential economic slowdown ahead.

From Investing.com: 2024-09-12 10:24:13

The Federal Reserve is struggling to keep up with slowing growth, as Sevens Report notes that a higher-than-expected Core CPI reading may stall rate cuts. Although housing costs drove up the Core CPI, excluding them would show minimal inflation increase. Real interest rates are now at 3.45%, the highest throughout the Fed’s tightening cycle, threatening economic growth. A 25-basis-point rate cut is more likely next week, due to concerns about aggressive cuts with Core CPI still elevated. Sevens warns of potential economic slowdown if the Fed falls behind in rate adjustments, causing market volatility and a possible correction.



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