Inflation expected to slow again in June, but high prices are still crushing Americans
Former Kansas City Federal Reserve Bank President Thomas Hoenig reacts to Jerome Powell saying the Fed is not ready to start cutting rates on 'Cavuto: Coast to Coast.'
A closely watched inflation report due Thursday is expected to show that price pressures within the economy continued to ease in June.
Economists expect the consumer price index, which measures a range of goods that includes gasoline, health care, groceries and rent, to show that prices rose 3.1% in June, down from the 3.3% reading recorded the previous month.
On a monthly basis, inflation is seen rising 0.1%, compared to the flat reading in May.
«We expect the June CPI report to be another confidence builder following the undeniably good May report,» Bank of America economists said in an analyst note.
FED'S POWELL SAYS MORE 'GOOD' INFLATION DATA WOULD BOLSTER THE CASE FOR RATE CUTS
Other parts of the report are expected to point to a slower retreat in inflation. Core prices, which exclude the more volatile measurements of food and energy, are projected to climb 3.4% annually. That figure is unchanged from the gain in May, suggesting that underlying price pressures remain strong.
The Federal Reserve's target rate is 2%.
The central bank is closely watching the report for evidence inflation is finally subsiding as policymakers try to determine when to cut interest rates and by how much.
FED HOLDS RATES STEADY AT 23-YEAR HIGH, PROJECTS JUST ONE CUT THIS YEAR
Although policymakers left the door open to rate cuts later this year during their May meeting, they also stressed the need for «greater confidence» that inflation is coming down before easing policy. Most investors now expect the Fed to begin cutting rates in September or November and are penciling
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