Slow inflation now means fed won’t hike rates
Swint 23- Barron's reporter based in the U.K
Brian Swint, "The Inflation Report Brought Good News. Why It May Not Last.," Barron’s, 7-13-2023, https://www.barrons.com/articles/what-to-know-today-fc7ede-- 嘉玮
The slowest inflation in more than two years is undoubtedly good news.
The 3% annual rate of price increases in June was even lower than economists had expected. It keeps alive the thesis that the Federal Reserve may soon be able to stop increasing interest rates, as well as the idea of “immaculate disinflation”—in which inflation cools without the need for a recession or a spike in unemployment.
Of course, it doesn’t really change expectations for a quarter-point Fed hike on July 26. But it does make a follow-up hike on Sept. 20 less likely.