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Has The Fed’s Rate-Hiking Cycle Peaked?
This week’s news on consumer inflation supports the case for expecting that the Federal Reserve’s interest rate hikes are approaching the end game. The basic calculus is that are disinflation persists, the odds rise that the central bank will pause its policy of tightening monetary policy. US consumer prices rose in June at the slowest pace since March 2021, providing more support for expecting that the Fed’s will put rate hikes on ice. Core inflation’s descent is still relatively sticky, which leaves more room for caution compared with reviewing headline comparisons, which are lower primarily due to softer ... (full story)