Navigating Inflation's Impact on Fed Rate Cuts and Economic Stability
TL;DR Summary
The Federal Reserve is cautious about cutting interest rates due to sticky inflation in the services sector, which has not slowed as much as the price of goods. While the cost of goods has remained flat or unchanged, the cost of services, such as recreation and transportation, has continued to rise. The biggest culprits are car insurance and repairs, as well as the cost of recreation, including cable and streaming TV. The Fed is banking on shelter costs decelerating in the coming months, but rising medical costs and high labor costs could further delay the return to the Fed's target inflation rate of 2%.
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