Cooling Inflation Revives Biden's Hope of Rate Cuts

President Biden and his team have given up on the possibility of the Federal Reserve cutting interest rates multiple times before the November election. However, their hopes for at least one pre-election rate cut were boosted by unexpected progress in taming inflation, as indicated by the Consumer Price Index. Although prices are still increasing at a faster pace than desired, data from May showed a slight cooling of price growth. This news has led to renewed calls from Biden’s allies for the Fed to lower interest rates in order to benefit American families, small business growth, workers, and the housing crisis.

President Biden and his team have abandoned their expectations of multiple interest rate cuts by the Federal Reserve before the November election. However, there was a positive development in the fight against inflation as the latest Consumer Price Index data showed a slight cooling of price growth in May. This news has renewed calls for the Fed to lower interest rates to aid American families, small business growth, workers, and the housing crisis.