WASHINGTON (AP) — Less-expensive gas likely slowed U.S. consumer inflation in May. But when the government reports the latest monthly price data Wednesday...
gas likely slowed U.S. consumer inflation in May. But when the government reports the latest monthly price data Wednesday, Wall Street traders and Federal Reserve officials will be paying particularly close attention to an index that excludes volatile food and energy costs.
The Fed is closely monitoring each month's inflation report for signs that it's succeeding in its fight against rising prices. A rise in core consumer prices of 0.3% is too high, over time, to be consistent with the central bank's 2% annual inflation target and could be seen as a disappointment. Still, the Fed's officials prefer a separate inflation measure, which typically comes in slightly lower than Wednesday's consumer price index.
Inflation had fallen steadily in the second half of last year, raising hopes that the Fed could pull off a “soft landing," whereby it manages to conquer inflation through higher interest rates without causing a recession. Such an outcome is difficult and rare.In early May, Chair Jerome Powell said the central bank needed more confidence that inflation was returning to its target before it would reduce its benchmark rate.
Some signs suggest that inflation will continue to cool in the coming months. Americans, particularly lower-income households, are pulling back on their spending. In response, several major retail and restaurant chains, including Walmart, Target, Walgreen’s, McDonald’s and Burger King,Trump Demands Biden Remove Ad of Him Calling Dead Soldiers ‘Suckers’ and ‘Losers’
President Joe Biden Federal Reserve Price Increases Inflation Measure Inflation Target Core Inflation Gas Prices
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