Welcoming good news about US inflation, the Fed will stop "acting" on interest rates

On June 13, data from the US Department of Labor showed that consumer price inflation in the country decreased for the 11th consecutive month in May.

US consumer price inflation at its lowest in about 2 years. (Source: iStock)

The consumer price index (CPI) in May 2023 increased by 4% year-on-year, in line with analysts' forecasts, compared with an increase of 4.9% in April.

Inflation in May was the lowest in about two years and less than half the 9.1% peak set in mid-2022.

On a monthly basis, the CPI rose 0.1% in May, after rising 0.4% in April. Excluding volatile food and energy prices, consumer price inflation in May rose 5.3% year-on-year.

The inflation data comes as Federal Reserve officials meet on June 13-14. The data could have an impact on the Fed's interest rate decision at the end of the meeting.

After 10 consecutive interest rate hikes since the beginning of last year, the Fed is expected to stop raising interest rates at this meeting.

According to Bloomberg , the inflation data helped reinforce market expectations that the Fed will keep interest rates unchanged at its policy meeting this week.

Analysts from financial website FXStreet also commented that, based on the data released up to this point, there is still no sign that the Fed will decide to raise interest rates at the last minute.

Source: https://baoquocte.vn/don-tin-vui-ve-lam-phat-my-fed-se-ngung-xuong-tay-voi-lai-suat-230883.html