General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsInflation eases further in June as Fed's favorite measure, PCE, falls to 2.5%
https://finance.yahoo.com/news/us-inflation-rises-moderately-june-131016945.htmlWhat's funny is the bias in this article title, if you go to the Yahoo Finance page it's title is listed as 'inflation rises" on the maine YahooFinance page. Inflation was 2.6% in May, and then fell to 2.5% in June. How is that rising? Oh, you have to look closely as month over month it was 0.0% on May and 0.1% in June. Both of those monthly nuymbers are outstanding and if they continue get us well below 2% inflation. You really have to spin it to make the headline seem negative. These number contonue and we'd be at less than 1% inflation a year from now.
There is only one more of these reports before the September meeting where the Fed will lower interest rates if everything holds.
Prices are basically flat right now, have been for a couple months. Wages contine to rise at a good pace though.
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gab13by13
(23,789 posts)TSF ordered Jerome not to lower rates. maybe Jerome will do a quarter point in September, we shall see.
Central bankers meet next week, lower the rates then.
Johnny2X2X
(20,881 posts)It's all but assured that a half poin drop will come in September. Powell is independent and not doing a rate cut now would be a disaster for his career and reputation. Powell has a chance to be near immortal as far as economists go, the soft landing he is pulling off will be lauded and studied for 100 years, he's not going to risk that for Trump's ego.
Johnny2X2X
(20,881 posts)There was talk of 25 now and 25 in September, but I think that was scrapped for 50 in September.
WarGamer
(14,071 posts)Traders are now absolutely certain the Federal Reserve will cut rates by September. The CME FedWatch tool shows a 93.3% chance that the Feds target range for the federal funds rate will drop to 5% to 5.25% in September from the current 5.25% to 5.50%.
Theres also a 6.7% chance of a half-point drop, reflecting some traders belief that the Fed might cut rates at both the end of July and again in September.
https://www.msn.com/en-us/money/markets/wall-street-is-unhappy-with-jerome-powell-s-rate-cut-strategy/ar-BB1q6BXo
Johnny2X2X
(20,881 posts)I wonder if another 25 points in October then too.
WarGamer
(14,071 posts)Mortgage rates and car loan rates are a big reason for negative economic perception with voters.
Johnny2X2X
(20,881 posts)DOW up 700+ so far.
WarGamer
(14,071 posts)ProudMNDemocrat
(18,275 posts)Great news. Democrats will run on that.
LetMyPeopleVote
(151,425 posts)![](https://pbs.twimg.com/media/GS3oqa6WYAAFnIZ.jpg)