![]() It also said several Fed districts have noticed some slowing in inflation. The latest “Beige Book” from the Federal Reserve on Wednesday said that overall economic activity has increased slightly since late May. It tends to follow expectations for the Fed more closely.Ī resilient job market has helped to keep the economy out of a recession, though it’s also under pressure from higher rates. The two-year Treasury yield dropped to 4.73% from 4.89%. It helps set rates for mortgages and other important loans. ![]() The 10-year Treasury yield fell to 3.86% from 3.98% late Tuesday. Treasury yields tumbled in the bond market after the cooler inflation data pushed traders to trim bets for Fed action later this year. jobs growth, which could also take some pressure off inflation. He pointed to another report earlier this month that showed a slowdown in U.S. “They’ll probably still pull the trigger on a hike, but it will be based on symbolism more than substance,” said Brian Jacobsen, chief economist at Annex Wealth Management. But expectations are also climbing for that to be the final increase after rates started last year at virtually zero. Traders remain nearly convinced the Fed will raise the federal funds rate at its meeting in two weeks to a range of 5.25% to 5.50%, which would be its highest level since 2001. Higher rates undercut inflation by slowing the entire economy and hurting investment prices, and they’ve already caused damage to the banking, manufacturing and other industries. High inflation has been at the center of Wall Street’s problems because it’s driven the Federal Reserve to jack up interest rates at a blistering pace. Perhaps more importantly, it was a touch lower than economists expected. That’s down from 4% inflation in May and a bit more than 9% last summer. government’s latest update on inflation showed that consumers paid prices for gasoline, food and other items that were 3% higher overall in June than a year earlier. Business & Finance Click to expand menu.
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