Economic Report Cites 'Stepped-up' Inflation
The Fed said tariffs, higher energy costs and AI investment pushed price pressures higher, while its preferred inflation gauge ran about twice its 2% target.
- On Friday, the Federal Reserve reported to Congress that inflation "stepped up further this spring" due to tariffs, war-related energy costs, and booming artificial intelligence investment.
- "Inflation has risen this year and remains elevated relative to the Federal Open Market Committee's longer-run objective of 2%," with gross domestic product expanding at a 2.1% annual pace supported by AI investment but hindered by a stagnant housing market.
- The Fed report noted "the labor market has stabilized, with demand and supply roughly in balance," with June unemployment remaining "low" at 4.2%.
- Warsh assumed his role in late May following former Fed Chair Jerome Powell's term expiration amid controversy involving President Donald Trump; investors now anticipate rate increases later this year.
- Colleagues at the June 16-17 meeting remain divided on future policy, with projections split between those anticipating rate increases and those expecting the policy rate to stay steady or fall.
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13 Articles
Missoulian
Economic report cites 'stepped-up' inflation
WASHINGTON — U.S. inflation "stepped up further this spring" as the evolving impact of tariffs, a war-related rise in energy costs, and the booming artificial intelligence build out boosted price pressures last year, the Federal Reserve said Friday in a…
The US central bank has told Congress that it will reduce inflation. The report comes from Yahoo Finance. In its semi-annual Monetary Policy Report to Congress, released on Friday, the Fed said it would "ensure price stability" in an environment of increased inflation. Economic Outlook Fed Chairman...
The US central bank notes that the CPE reached 4.1 per cent in May, more than double its target, while energy, trade barriers and technological investment complicate any rate drop.
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