The July consumer price index report is expected to show that inflation cooled slightly to 2.9% year-over-year, while the Fed eyes rate cuts and inflation becomes a key election issue.
A closely-watched inflation report is due to be released Wednesday morning and is expected to show that inflation has continued to ease as the issue comes to the forefront of the presidential race and the Federal Reserve eyes a potential interest rate cut as soon as next month. Economists expect the consumer price index – which measures a range of goods including gasoline, health care, groceries and rent – to show that prices rose 2.
Powell said in remarks last month at the Economic Club of Washington D.C. that waiting for inflation to reach 2% could result in an excessive tightening of economic activity that leads to policymakers overshooting their target.
Inflation began to surge in early 2021 amid pandemic-related supply chain disruptions and a historic influx of federal spending. It peaked at a 40-year high of 9.1% in June 2022, and the Fed raised the benchmark federal funds rate to a 23-year-high range of 5.25% to 5.50% to tamp down inflation. Rates have remained unchanged at that level since last July.
The thing that really is making them angry is what Kamala and Biden have allowed to happen with the economy. It's a disaster with inflation," Trump said. The inflation – it doesn't matter what you make – the inflation is eating you alive. If you're a worker, or if you're just a middle-income person you can't afford – you know, four years ago, five years ago, people were saving a lot of money. Today, they used up all their money and are borrowing money just to live.
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