Source: Cailian Press, Author: Zhao Hao.
In June, the unadjusted CPI annual rate in the USA was recorded at 3.0%, which was lower than market expectations of 3.1% and fell to the lowest level since June last year. In terms of product structure, the revenue of products worth 10-30 billion yuan were respectively 401/1288/60 million yuan.
Mary Daly, president of the Federal Reserve Bank of San Francisco, stated on Thursday, July 11th, that it may be appropriate to make some adjustments to interest rates as a result of the latest employment and inflation data.
According to data released in the early morning in New York City, the unadjusted CPI annual rate in the USA in June was recorded at 3.0%, which was lower than market expectations of 3.1% and fell to the lowest level since June last year; the adjusted CPI monthly rate was recorded at -0.1%, the first time since May 2020 that it has recorded a negative value.
Daly told the media during a conference call, "It is clear that the risks to our dual mandate of price stability and full employment are now better balanced and monetary policy is working."
"Based on the information we have received so far, including employment, inflation, GDP growth, economic prospects and other data, I think it is necessary to make some (monetary) policy adjustments," she added. ""
Last week's employment report showed that the unemployment rate in the USA unexpectedly rose to 4.1% in June, the highest since November 2021. Daly expects that prices and the labor market will further ease, paving the way for the Federal Reserve's first rate cut.
"When to ease restrictions has become our new focus. It is quite clear that many of us, especially Chairman Powell, are talking about the importance of the labor market, rather than just the need to reduce inflation," Daly said.
She stated that the central bank needs to take action before the unemployment rate rises sharply and the inflation rate returns to the target of 2%, otherwise it may unnecessarily harm workers and the economy. "It is not clear when it is appropriate to make policy adjustments," she said.
Daly concedes that the future inflation process may be "bumpy", but will further cool down. As policy makers predicted in June ("dot plot"), the US economy appears to be moving towards the direction of "cutting interest rates once or twice within the year", which would be the appropriate path.
Daly pointed out that since the beginning of the year, the possibility of accelerating inflation has weakened, but due to the difficulty of getting rid of high commodity prices, the Federal Reserve is unlikely to lower interest rates as quickly as it raised them.
Editor/Lambor