As Warsh’s Fed faces pressure to act on inflation, these indicators show it’s at its lowest in years
📰 source: cnbc_topnews · 📚 research
trimmed mean inflation measures show the lowest readings in years, even as the fed faces pressure to act on inflation. the dallas fed's one-month annualized rate hit 1.4% in june, down 1.3 points from may and the lowest since november 2020. its 12-month rate dipped to 2.2%, the bottom since july 2021. the cleveland fed's trimmed cpi also hit 2.63%, lowest since may 2021.
not all officials are convinced. dallas fed president lorie logan dissented against holding rates, preferring a quarter-point hike. she warned that a shift in the mix of price increases and decreases is causing the trimmed mean to drop too many increases, likely making it lower than the true trend. minneapolis's neel kashkari and cleveland's beth hammack joined her dissent, calling inflation uncomfortably high.
chair kevin warsh said the five-plus years of above-target inflation can't be cured in nine weeks. citigroup's andrew hollenhorst expects markets to price out hikes and price in cuts if unemployment rises, as underlying inflation still slows toward target.
why it matters: trimmed mean inflation at multi-year lows could shift warsh's fed toward holding rates, and markets are watching for cuts.
source: cnbc_topnews
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