Is the US Federal Reserve Winning the Inflation War?

Is the Federal Reserve Winning the Inflation War? A question raised by the Commerce Ministry's latest data showed inflation not far from the 2.0% target rate.

The decline bolsters Americans' morale and gives more confidence that the U.S. economy is capable of avoiding recession while keeping prices under control.

The Federal Reserve's preferred measure of inflation, the personal consumption expenditures price index, fell 0.1% in November from a month earlier, its first decline, according to a report in the Wall Street Journal. April. April 2020. According to the report, prices rose 2.6% on an annual basis, not far from the Federal Reserve's target of 2%.

Excluding volatile food and energy costs, core prices rose just 1.9% year-on-year for the six months, suggesting the central bank is on track to meet its target. “Stocks saw little change on Friday, the last day of trading before the Christmas break, but all three major indexes rose for the eighth week in a row,” the report said.

The Dow Jones Industrial Average rose 81 points, or 0.22%, to 37,386 this week. Investors in interest rate futures markets now see a 90% chance the Fed will cut interest rates at its March meeting, according to CME Group.

The Wall Street Journal says consumers have adopted more optimistic expectations after facing crushing inflation and recession fears over the past two years. On Friday, a measure of consumer sentiment released by the University of Michigan rose 14% in December to a five-month high, as households cut their expectations for inflation next year compared to the previous month.