Fed Minutes: Inflation Made Further Progress on the Target
The Fed minutes showed that participants noted that inflation had eased over the past year but remained elevated. In recent months, inflation has made some further progress on the Committee's 2% inflation target. Participants noted that recent progress on disinflation was broad-based, involving major components of core inflation. Core goods prices were essentially flat in March-June after rising in the first three months of the year. Housing services price inflation slowed significantly in June, which participants had expected for some time. Regarding the inflation outlook, participants believed that recent data strengthened their confidence that inflation would continue to move toward 2%. Almost all participants noted that the factors that led to the recent retreat in inflation could continue to put downward pressure on inflation in the coming months.
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