After Federal Reserve officials meet this week, a statement they will issue may suggest that they’ve seen meaningful progress on inflation this year — a prelude to eventual interest rate cuts
FILE - Federal Reserve Board Chair Jerome Powell speaks during a news conference at the Federal Reserve in Washington, May 1, 2024. On Wednesday, June 12, 2024, the Federal Reserve will end its latest meeting by issuing a policy statement, updating its economic and interest-rate projections and holding a news conference with Powell.
A Fed rate cut might give the economy a modest lift, which would be welcomed by President Joe Biden's re-election campaign, which is struggling to counter many voters' unhappiness with the inflation spike of the past several years. Though consumer inflation has slowed dramatically since peaking at 9.1% in mid-2022, it was still 3.4% in April, well above the Fed's target.
At his news conference, Powell will likely reiterate that Fed officials need more confidence that inflation is returning to 2% before they would consider rate cuts, and that this will likely take additional time. The number of open jobs fell in April to the lowest level in three years, though the number remains high by historic standards. And consumers actually cut back on their spending in April, after adjusting for inflation, a sign that high prices and elevated interest rates are pressuring Americans' finances.
Given last year's strong growth and substantial job gains earlier this year, some officials had come to doubt that their rates were high enough. Minutes of the Fed's most recent meeting suggested that some officials had even expressed openness to additional rate hikes.
Business Government Regulations Washington News General News U.S. News Article 110976200
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed's Schmid: Inflation is still too high, Fed has more work to doKansas City Federal Reserve Bank President Jeffrey Schmid spoke at the regional bank's agricultural summit on Tuesday.
Read more »
US futures flat with inflation, Fed meeting on tapUS futures flat with inflation, Fed meeting on tap
Read more »
Fed's Logan sees inflation trending toward 2% targetFed's Logan sees inflation trending toward 2% target
Read more »
Economic outlook more pessimistic as consumers feel inflation pinch: FedEconomic outlook more pessimistic as consumers feel inflation pinch: Fed
Read more »
Fed’s Kashkari wants ‘many more months’ of positive inflation data before rate cutFed’s Kashkari wants ‘many more months’ of positive inflation data before rate cut
Read more »
Inflation remains on path to 2% target, but at slow pace, Fed's Bostic saysInflation remains on path to 2% target, but at slow pace, Fed's Bostic says
Read more »