The US economy sees further disinflationary movements. Following the data of the New York Fed, US consumer inflation expectations have fallen for the 2nd month in a row, reaching 3% in June 2024, down from 3.2% in May. This decline reflects a widespread reduction in anticipated price increases across various sectors.
Notably, consumers foresee smaller price hikes in:
Gas: down 0.5 points to 4.3% Food: down 0.5 points to 4.8% Medical care: down 1.7 points to 7.4% Rent: down 2.6 points to 6.5% College education: down 3.1 points to 5.3%, the lowest since December 2020 Home prices: down 2.6 points to 3%
Additionally, five-year inflation expectations dropped slightly to 2.8%, while the three-year forecast inched up to 2.9%. If this week's inflation data is also favorable, the central bank is likely to come under further pressure to make money cheaper again and close the widening gap with the European Central Bank to some extent.
We only expect to still be 50% above the inflation target a year from now. What great news!
I don't think the Fed's going to be bailing Biden out. My fellow American's should get ready for a bumpy ride. Of course, my fellow stackers are already ready.
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and the propaganda machine will run hot. in your country and here in Europe, the greedy entrepreneurs are to blame again and even the great libertarian hero Bukele is now blaming the entrepreneurs, I had read.
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Don't be so sure. They're trying to push Biden out of the way. Calling him out for persistently high inflation and lying about it might be on the table.
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42 sats \ 1 reply \ @TomK OP 9 Jul
then I am curious to see how Kamala will manage to blame Donald Trump for inflation (of course he is an inflationista, too)
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Yeah, that shoe fits. Trump did inflate the money supply by something like $6T.
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I bet the new inflation target will 2.5 percent or anything under 3 percent
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10 year yield vs 2 year yield
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