US Inflation Plummets to Historic Low of 2.5% in August 2024!
Key Points:
This is considered a vital step forward for the Federal Reserve, which is considering issuing its first interest rate cuts in over four weeks. These cuts are expected to occur as early as next week and will substantially diversion from the Fed’s monetary policy course.
This surprise decline has brought the timing of rate cuts forward despite inflation exceeding the Fed’s goal of 2%. According to the CME Group FedWatch tool, the probability of a 25 bp cut at the next FOMC on September 17th rose to 71%.
Read more: US CPI Data Falls Unexpectedly in May, Signals Potential Market Upside!
The United States has been fighting persistent inflation, particularly after the start of the pandemic. The Federal Reserve’s continuous rate hike policy for the last couple of years to tackle inflation has received mixed responses. While such hikes were essential for containing inflation, they have added more doubts about an impending delay in recovery.
August was a very critical month for all the economic indicators, and the lower-than-expected reading of the CPI came as a surprise. US inflation decreased from 2.6% in July to 2.5%, thus edging the Fed nearer to its 2% target.
This extends gains following a $2 trillion stock market meltdown in early August and puts it within a hair’s breadth of its all-time peak. The Fed was under heightened pressure to cut interest rates after the 23-year high rates of late began taking their toll on markets.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Competition has risen, pushing Bitcoin mining difficulty to new heights of intricacy and making it…
Bitcoin price surge may be coming regardless of the outcome of the US presidential election,…
Brazilian police seize $1.6B in crypto and fiat during nationwide raids, uncovering money laundering through…
Ethereum faces bearish pressure, Avalanche unveils a major upgrade, and BlockDAG attracts whales during its…
BNB Chain recovers from declining volumes, Shiba Inu shows signs of a comeback, and BlockDAG…
The UK Property Bill aims to close a legal gap by providing stronger protections against…
This website uses cookies.