Inflation Slows, Paving the Way For the U.S. Fed to Pause Rate Hikes

The U.S. Federal Reserve announced in May an interest rate hike of just 25 basis points, much tamer than the 50 or 75 basis points put forth in the previous tightening rounds. This is in line with U.S. inflation trends that continued its 10-month streak and dipped to a new low of 4.9%. While still significantly higher than the Fed’s target of around 2% per year, the newest Consumer Price Index (CPI) reading represents a sharp drop from the heart-stopping 9.1% inflation seen last June.

What this may mean for you

The continued decrease in inflation could pave the way for the U.S. Fed to pause rate hikes for the rest of the year. This could bring much-needed relief from the relentless downward pressure that...