In May, US inflation dropped to 3.3 per cent, but the Fed maintained interest rates at 5.25-5.50 per cent. Despite predictions that CPI will fall to 2.5 per cent by October 2024, it remains above the Fed’s 2 per cent target, impacting consumer confidence and spending.
Retail sales have seen minor growth due, but long-term recovery remains uncertain.
Stable interest rates highlight challenges in US economic recovery
In May, US inflation dropped to 3.3 per cent, but the Fed maintained interest rates at 5.25-5.50 per cent. Despite predictions that CPI will fall to 2.5 per cent by October 2024, it remains above the Fed’s 2 per cent target, impacting consumer confidence and spending.
Retail sales have seen minor growth due, but long-term recovery remains uncertain.