Reserve, US Central Bank, should maintain a reference rate between 4.25% and 4.50% at the next meeting, despite requests from US President to reduce interest rates
In June, the United States registered an increase of 0.3% in inflation Compared to May, resulting in an accumulated high of 2.7% in the last 12 months. This index exceeds the target of 2% established by the Federal Reserve. Experts believe that this elevation may be linked to the tariffs imposed by Donald Trump on imported products, especially affecting the Brazilwhich will face a 50%surcharge.
When food and energy prices are excluded, the consumer price index rose 0.2% in June, with an increase of 2.9% by one year. Nevertheless, moderate growth in service costs such as air tickets and lodging can help mitigate concerns about widespread inflation. This situation suggests that inflationary pressure may not be as intense as it was feared.
The Federal Reserve, in turn, should maintain its reference interest rate between 4.25% and 4.50% at the next meeting, even in the face of Donald Trump’s requests for a reduction in rates. The June meeting minutes revealed that only a restricted number of Fed authorities considered the possibility of rates in rates as early as July, indicating caution about immediate changes in monetary policy.
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The slow response of inflation can be attributed to the stock accumulated by companies before the implementation of tariffs, suggesting that the effects of new trade policies are still manifesting on the economy. Thus, the current situation requires careful attention, as Fed decisions and trade policies can have significant impacts on the economic future of the United States and their business partners.
Published by Nicolas Robert
*Report produced with the aid of AI
Source: Jovempan
I have been working as a journalist for over 10 years. In that time, I have covered the news from all corners of the world, and written about everything from politics to business.I’m now a full-time author, and my work can be found at Global happenings. My aim is to bring you up-to-date news and views on global affairs, in a format that is easy to read and understand.
