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HTX News

07/15 13:06

US core CPI is lower than expected, which may aggravate the differences of the Fed's interest rate c

 affected by the decline in car prices, the core CPI in the United States has been lower than expected for the fifth consecutive month. Specific data shows that prices of categories such as toys, furniture, household appliances, and clothing, which are heavily affected by tariffs, have performed strongly, indicating that companies have begun to pass on higher import costs to consumers. At the same time, prices of new cars and used cars have fallen. The lower-than-expected core CPI has raised questions about how much the tariffs introduced by Trump will affect consumer prices. Some companies have protected consumers from the impact by stockpiling inventory before the tariffs are imposed, or by absorbing some additional costs at the expense of lowering profit margins. This lower-than-expected data may prompt Trump to more strongly urge the Fed to cut interest rates. Although some officials have expressed willingness to cut rates at the meeting in two weeks, policymakers still have differences on whether tariffs will lead to a one-time price shock or a more lasting impact, so they may once again keep interest rates unchanged.

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