Why this forces the Fed to act →


The Fed bases its interest rate decisions on just two pillars:
• Inflation
• Unemployment
Right now, inflation is still under control, but unemployment is starting to rise.
This combination leaves the Fed with no option but to begin cutting rates.
Inflation is not the problem anymore →
➺ Consumer Price Index (CPI) has been stable in the 2.5%–3% range for months.
➺ Core inflation is cooling.
➺ And the Truflation index, which tracks real-time prices, shows inflation close to 2%, exactly at the Fed’s official target.
So inflation is no longer a reason to keep rates high.
WHY-8,43%
ACT-2,1%
NOT-5,06%
IN-2,72%
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