Media: the Fed must understand that inflation is defeated

With the latest U.S. inflation-driven economic data for May, the market sees a nearly 100% chance that the Federal Reserve will halt further rate hikes this week, Business Insider reports.

According to the Fed futures prices, investors are confident that the rate will be left unchanged after the release of the May US Consumer Price Index (CPI).

In May, consumer inflation fell back to 4% year-on-year, the lowest level in two years. These data will certainly affect the Fed's decision this week, experts say.

Recall that the Fed has made 10 consecutive increases in the base rate since March last year. If the central bank decides to leave the rate unchanged, it will be in the range of 5% to 5.25%.

Analysts believe that the CPI data indicates that inflation is under control. Most of the rise in prices is in the housing sector, but it takes time for the decline in housing prices to be reflected in the CPI. So the current 4% inflation rate is actually closer to the Fed's 2% target.

In general, on the back of this positive news, the stock market showed growth, and the S&P 500 index continued to rise after closing at the highest level since April last year on Monday.

Prices rose 0.1% in May from April, slightly below the 0.2% growth forecast by economists. Food prices rose 0.2% after two months without significant change.