The Bureau of Labor Statistics (BLS) has released the Consumer Price Index (CPI) data for the month of June in the United States. Furthermore, the data shows that inflation in the country has declined to 3%. It is noteworthy that this represents a positive trend as it demonstrates a steady decrease from the previous month’s rate of 4% and 4.9% in April.
How will the Fed React to the June US inflation numbers?
Starting from March 2022, the Fed has gradually raised interest rates with 10 consecutive adjustments, bringing the benchmark federal funds rate to a target range of 5 to 5.25 percent.
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The reaction of the Fed to the current inflation figures remains uncertain. It is worth observing whether they will choose to increase interest rates or take steps to manage the situation.
According to an interview with CNN, Brian Moynihan, the CEO of BOA, expressed his belief that the United States may achieve its inflation target of 2% by 2025. Additionally, based on the current projections of the Fed, it is anticipated that inflation in 2025 could be approximately 2.1%, which would be a decrease from the current rate of 4.4%.