Federal Reserve policymakers have spent much of their pandemic on more inflation than expected, but they were able to reduce it for the rest of the year. But that may not discourage them from actively raising interest rates.
Thursday’s Department of Commerce said Consumer price index— The Fed’s recommended inflation gauge — rose 0.6% from April to May. 6.3% above the previous year’s level.. Core prices, excluding food and energy items, rose 0.3% month-on-month and up 4.7% year-on-year to better track the underlying trends in inflation. Both indicators are below economists’ expectations, suggesting that inflation is barely cold, but may be starting to heat up a bit. Year-over-year, core prices recorded the smallest increase since October.
The Fed is still feeling the heat of inflation
Source link The Fed is still feeling the heat of inflation