Overview

• May’s consumer price index rose just 0.1 percent versus the 0.2 percent analysts forecast and recorded an annual gain of 2.4 percent, slightly above the Fed’s 2 percent goal.
• Vice President JD Vance blasted the Fed on X as committing “monetary malpractice” by holding rates steady, echoing President Trump’s sustained demands for cuts.
• President Trump has accused Chair Jerome Powell of politicizing monetary policy, citing past rate cuts ahead of the 2024 election.
• Fed officials’ March projections still envisage at least two rate reductions this year, but policymakers are maintaining their current stance for now.
• Markets have largely priced in a September rate cut, although many economists doubt significant easing will occur before December.