Overview

• US inflation rates have cooled more than expected, with consumer prices rising just 3.3% annually, down from a 2022 peak of over 9%.
• The Federal Reserve has signaled only one rate cut for the remainder of the year, deviating from earlier projections of three cuts.
• Supply chain improvements and increased labor force participation have significantly contributed to the reduction in inflation.
• The Bank of Japan's decision to delay bond purchase cuts leaves the yen vulnerable, while European political shifts have weakened the euro.
• Despite economic improvements, consumer sentiment in the US remains low, reflecting ongoing public concerns about inflation and economic stability.