Inflation Remains On Moderating Track

As expected, the Fed opted not to lower the federal funds rate at yesterday’s FOMC meeting, but participants’ median economic projections changed considerably since March and now suggest only one cut this year (though we expect none). Their projections depict a robust economy doing just fine with rates this high. … Yesterday’s CPI release for May confirmed that the Fed’s 2.0% inflation target is in the crosshairs, as Eric details. … Even so, inflation frustration among consumers hasn’t abated as the rates of inflation have cooled. How much more consumers pay now than before the pandemic is what sticks in their craw; so do higher interest rates and less affordable housing.