Inflation is holding on (chart)

By Taxpayers Association of Oregon Foundation,

Inflation rose in recent months, with year-over-year inflation holding steady around three percent. Healing supply chains, and slower wage gains are largely responsible for slowing the rate from 2022, but inflation is still far from the Federal Reserve’s 2% target. The Fed believes that inflation will slow further in the next few years, and reach the target without a recession.  At the start of the year the Fed indicated it expected to cut rates 3-4 times, while financial markets priced in more like 6 rate cuts. The current forecast now calls for just one rate cut in December 2024.