On May 25, Fed Governor John Waller said at the economic summit that the U.S. economy is still strong and inflation is still high, which is the reason for continuing to raise interest rates.
“A decision on whether to raise rates in June or delay the next rate hike until the July meeting remains undecided. Officials will make a final decision on what to do after seeing the latest employment and inflation data for April and May. When there is clear evidence Will not support a pause in rate hikes until it shows that inflation is falling to the Fed’s 2% target. We need to be flexible in June when the best decision is made. I don’t think the data in the coming months will make it clear that we have reached the terminal rate level.”
Economists expect the PCE inflation report for April, due on Friday, to show prices rose 4.6 percent from a year earlier, unchanged from March.