Economics
Hurdles Higher for Future Fed Rate Hikes as Inflation Slows
- Weaker-than-expected U.S. retail sales show consumer ‘siesta’
- Central bank expected to forge ahead with Wednesday increase
London & Capital Sees No Reason Fed to Be Aggressive
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The deepening slowdown in U.S. inflation probably isn’t enough to keep Federal Reserve officials from raising interest rates on Wednesday as anticipated, but the hurdles for further hikes just got higher.
The consumer price index fell for the second time in three months, while prices excluding volatile food and fuel had the smallest year-over-year gain since May 2015, Labor Department data for May showed. Retail sales decreased last month by the most since the start of 2016, according to the Commerce Department, though upward revisions to some figures mitigated the disappointment.