Economists Endorse September Fed Rate Cut As Inflation Falls To March 2021 Level: 'The Policy Mistake Has Already Been Made'

Benzinga · Jun 28 23:46

Economists have broadly welcomed the latest key piece of inflation data, with thePersonal Consumption Expenditure(PCE) price index — commonly referred to as the Fed's favorite measure of inflation — dropping to a 2.6% year-on-year rate in May 2024, its lowest level since March 2021.

This decline signals significant progress in the Federal Reserve's efforts to bring inflation closer to its 2% target, opening the door for interest rate cuts by year-end.

Following the release, the futures market currently predicts a 52 basis point reduction in the fed funds rate by December 2024, effectively pricing in two rate cuts, with a 68% probability...

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Economists Endorse September Fed Rate Cut As Inflation Falls To March 2021 Level: 'The Policy Mistake Has Already Been Made'

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