The Clap
The inflation slowdown has eased some pressure off the Fed, but it’s likely they will continue to hike interest rates until more pressure is off.
The Deets
Despite the slowdown in inflation in July 2022, the Fed still believes that rising equity prices and a growing job market still indicate that their job is not done yet.
Fed officials agree that inflation is still too high and that efforts to slow it down should still not be reduced.
It’s expected that interest rates could reach 3.9% by the end of this year and 4.4% by the end of 2023, indicating that the war against inflation is far from over.
Inflation Target
The Fed is aiming to bring inflation down to 2%, putting aside fears of a recession to hit this target.
The Fed wants to see more evidence that inflation has cooled down before it can ease monetary policy.
Inflation slowdown not enough to curb interest rate hike 🏛
