WASHINGTON (AP) — With its larger-than-usual half-point cut to its key interest rate last week, the Federal Reserve underscored its belief that it's all but ...
to its key interest rate last week, the Federal Reserve underscored its belief that it's all but conquered inflation after three long years.by The Associated Press-NORC Center for Public Affairs Research, show that most Americans remain unhappy with the economy, still bruised by an inflation rate that hit a four-decade high two years ago as the economy rebounded from the pandemic recession.
That is a sign that, at least seen through a political prism, Americans' economic views have begun to brighten. Sofia Baig, an economist at the polling firm Morning Consult, noted that Americans still see high prices as a financial burden. According to, she said, when most people think about inflation, they think about how much lower prices were two or four years earlier. Fed officials and economists, by contrast, typically measure success in shorter-term durations — prices compared with a year ago, six months ago, even one month ago.
Neale Mahoney, an economist at Stanford, said his research shows that the hit to consumer sentiment from an inflation spike fades by about 50% a year. Yet Mahoney noted that the influence of politics has intensified in this election cycle. And in 2023, median household income rose 4% faster than prices, the first gain in inflation-adjusted income since the pandemic, the Census Bureau
Since 2022, Morning Consult has surveyed shoppers on whether the costs of goods and services they've bought have been pricier than they expected. That measure has tumbled from two years ago, a sign that many Americans are adjusting to higher costs. If inflation kept cooling at its current pace, Waller said, he could support additional half-point rate cuts.Bank of America said it will open 165 branches by the end of 2026, the latest big US lender to announce more brick-and-mortar locations following a decade of industry retrenchment.
Consumer Sentiment Inflation Rate Kamala Harris Joe Biden Jerome Powell Morning Consult Federal Reserve Inflation Gauge Americans Christopher Waller Neale Mahoney
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