From Forbes: 2024-05-15 11:56:56

The Federal Reserve remains cautious about cutting interest rates as inflation slowly eases from highs seen earlier in 2024. April’s Consumer Price Index report shows signs of improvement, but more data is needed to meet the Fed’s 2% inflation target. Core inflation is declining, while shelter costs remain a key factor affecting overall inflation trends.

Recent inflation data reveals a slight decrease in monthly CPI inflation, with core inflation falling to a 3.6% annual rate in April. Components like vehicle prices and food away from home are showing declines, but inflation pressure persists in services. Future inflation releases may provide more insight into whether inflation is moving closer to the Fed’s target.

Upcoming inflation reports could influence the Fed’s decision on interest rates. With steady job market performance, the FOMC is taking a cautious approach until more evidence supports sustained inflation levels. While no rate cuts are expected at the upcoming June meeting, fixed income markets predict potential cuts later in 2024 based on the positive signs from the April CPI report.



Read more at Forbes: April’s CPI Report Keeps Hopes Of 2024 Interest Rate Cuts Alive