A line of unsold 2024 Edge utility vehicles sit at a Ford dealership Sunday, May 19, 2024, in Denver. Policymakers' willingness to keep their key rate at a two-decade peak thereby keeping costs painfully high for mortgages, auto loans and other forms of consumer borrowing carries its own risks.–
The Fed, led by Chair Jerome Powell, raised its benchmark rate by 5 percentage points from March 2022 through June 2023 — the fastest such increase in four decades — to try to drive inflation back down to its 2% target. According to the Fed's preferred measure, inflation has tumbled from 7.1% in June 2022
“We will need to accumulate further data over the coming months to have a clearer picture of the inflation outlook,” Loretta Mester, president of Federal Reserve Bank of Cleveland, said this month."I now believe that it will take longer to reach our 2% goal than I previously thought.” But Coronado and other economists also regard the latest trends as a sign that the economy may simply be normalizing after a period of rapid growth. Companies, though at a more modest pace than at the start of the year. And data suggests that Americans traveled inOne reason why inflation remains above the Fed's target is that distortions stemming from the pandemic are still keeping prices elevated in several areas even as much of the rest of the economy has moved past the pandemic.
The cost of a new lease, though, has tumbled since mid-2022. A gauge of newly leased apartment rents calculated by the government shows that they rose just 0.4% in the first three months of 2024 compared with a year earlier. Yet it takes time for newer, lower-priced rents to feed into the government's inflation measure.
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Federal debt, Federal Reserve and inflation: Parsing their impacts.Understanding the linkages between them is important for sorting out where we have been, where we are, and where we are going.
Source: ExpressNews - 🏆 519. / 51 Read more »