The jump in core inflation, coupled with a jobs report last week that suggested a still-resilient labor market, indicate plenty of work ahead for the Federal Reserve in its efforts to restore economic balance.
Falling inflation in recent months and early signs of an economic cooldown prompted the Fed to get its rate-cutting path underway with a 50-basis-point reduction in its most recent rate decision.
Persistent core inflation may give it pause for thought in weighing up the size of its next cut – but the mild pace of overall inflation is likely to boost confidence that the economy is moving in the right direction.
Inflation has emerged as a key issue for voters as Vice President Kamala Harris prepares to face off against former president Donald Trump in November’s presidential election.
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Source: mpamag.com