Not everyone is excited about today's CPI inflation data coming in below expectations. Alex McGrath, an advisor at the NorthEnd Private Wealth team, stated in a report, 'If the Fed's goal is to maintain restrictive rates until the inflation rate returns to its target, then we still have a long way to go.' The CPI annual rate for May was 3.3%, with the core indicator at 3.4%. McGrath stated that while this data may cause some small celebrations, 'the fact is that this round of inflation has lasted for 3 years, with the inflation rate still at 3.3% on a year-on-year basis, far above the target.' Currently, the market believes there is a higher possibility of the Fed cutting rates by 25 basis points for the first time in September.
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Not everyone is excited about today's CPI inflation data coming in below expectations. Alex McGrath, an advisor at the NorthEnd Private Wealth team, stated in a report, 'If the Fed's goal is to maintain restrictive rates until the inflation rate returns to its target, then we still have a long way to go.' The CPI annual rate for May was 3.3%, with the core indicator at 3.4%. McGrath stated that while this data may cause some small celebrations, 'the fact is that this round of inflation has lasted for 3 years, with the inflation rate still at 3.3% on a year-on-year basis, far above the target.' Currently, the market believes there is a higher possibility of the Fed cutting rates by 25 basis points for the first time in September.