- Analytics
- News and Tools
- Market News
- First Federal Reserve rate cut set to come in December despite slowing inflation – RBC
First Federal Reserve rate cut set to come in December despite slowing inflation – RBC
The US Consumer Price Index (CPI) fell to 3.3% in May from 3.4% in April. Federal Reserve Chair Jerome Powell and other Fed officials will be relieved that price growth took a step back, says Nathan Janzen, Assistant Chief Economist at the Royal Bank of Canada. Still, the bank's main scenario is that the Fed won't cut interest rates until the end of the year, in December.
Softer-than-expected CPI set to put Fed on hold
“Year-over-year CPI growth edged down to 3.3% in May from 3.4% in April, softer than expected. Prices of core services ex-rent edged slightly lower from April in May (-0.04%), the lowest MoM reading since September 2021.”
“Core (excluding food and energy prices) price growth slowed to 3.4% from 3.6% YoY on a more normal looking 0.2% MoM increase in May, the first increase under 0.3% since October. Energy price growth ticked higher YoY with a drop in gasoline prices from April (-3.6%).”
“Federal Reserve officials will be relieved that price growth took a step back in May after signs of reacceleration earlier this year. Further data should help to reinforce Fed Chair Powell's view that interest rates are already at 'restrictive' enough levels. Our own base-case assumes the first Fed rate cut will come in December.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
