Fed, inflation and rate hike
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The 12-month rate of inflation as of July 2026 is 3.4%, according to the Bureau of Labor Statistics (BLS). Energy inflation spiked to 14.7% as the status of the Strait of Hormuz remains uncertain. Core inflation, which excludes energy and food, was 2.5%.
AFP Federal Reserve Chair Kevin Warsh may be finding something increasingly rare inside the divided U.S. central bank: a reason for almost everyone to keep rates unchanged. A run of softer inflation data combined with signs of a cooling labor market has weakened the case for raising interest rates at the Fed's September meeting.
Forbes contributors publish independent expert analyses and insights. I show you how to save and invest. This voice experience is generated by AI. Learn more. This voice experience is generated by AI. Learn more. Inflation jumped to 4.2% in May, the ...
The Bureau of Labor Statistics released its June CPI report, showing inflation dropped 0.4% for the month, bringing the annual inflation rate to 3.90%. Temporary lower fuel costs remain the primary catalyst for these trends. Core CPI remained unchanged ...
Federal Reserve policy rates are perceived as a barrier to achieving the 2% inflation target, according to a statement from Musalem, which suggests that raising rates now might prevent the need for more aggressive future actions.
Recent elevated inflation readings are "much more likely to be transitory this time" compared to the post-pandemic surge, according to Stephen Miran, Hudson Bay Capital senior strategist. The former Fed governor said he expects the Federal Reserve to hold ...