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The Federal Reserve’s preferred inflation gauge had been expected to reinforce the growing case for interest rate cuts sooner rather than later.
The Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures index, climbed 4.4 percent in April, a slight increase from March.
That could bring the federal funds rate, currently at 4.83%, to about 4.4% in December, and down to 3.4% in June 2025, he added. Inflation is down, but prices are still up ...
The Federal Reserve is opening the door to possible interest rate hikes earlier next year than had been expected, as it wrestles with the highest inflation in nearly four decades.
There’s rarely a convenient time for the Federal Reserve to openly debate whether its 2 percent inflation target makes sense. This isn’t that time, but the Fed better get ready.
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