Inflation in America has slightly decreased, potentially leading to lower interest rates. Core prices rose 3.4% annually in May, down from 3.6% in April. The Federal Reserve is expected to hold its benchmark interest rate steady, with potential for one or two rate cuts this year.
Key Points
Inflation has slightly decreased in America
Federal Reserve expected to hold interest rates steady
Potential for one or two rate cuts later this year
Pros
Decrease in inflation may lead to lower interest rates
Core prices rose at a slower rate compared to previous months
Cons
Public dissatisfaction with President Biden's economic leadership