FOMC Minutes: US Consumer Prices Favour Declining Inflation

The minutes of the latest FOMC meeting issued on Wednesday indicated that members of the committee are convinced that the US consumer price index readings (CPI) last May provided evidence that there is progress in terms of lowering inflation while meeting the central bank’s goal.

A number of policymakers also suggested that there are some new developments in the product market and labor market in the United States that shed light on what supports their view that inflationary pressures are declining.

The Fed also maintained the same economic estimates at last June’s meeting compared to previous estimates, with official interest rate expectations changing to suggest a rate hike only once until the end of this year, according to results released Wednesday.