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Recent signs that inflation is easing have paved the way for the Federal Reserve to start lowering interest rates as soon as this fall.
The consumer price index, a key inflation gauge, dipped in June for the first time in more than four years, the Labor Department reported last week.
“With abundant signs of a cooling economy, the consumer price index for June certainly constitutes the ‘more good data’ on inflation that Fed Chair Jerome Powell has said we need to see before the Fed can begin cutting interest rates,” said Greg McBride, chief financial analyst at Bankrate.com.
With a fall rate cut looking more likely now, households may finally get some relief from the sky-high borrowing costs that followed the most recent series of interest rate hikes, which took the Fed’s benchmark rate to the highest level in decades.
