Federal Reserve July monetary policy report: inflation rising again

WU SAID THAT THE JULY MONETARY POLICY REPORT SUBMITTED BY THE FEDERAL RESERVE TO CONGRESS INDICATED THAT INFLATION IN THE UNITED STATES HAD RISEN AGAIN THIS YEAR, WITH THE OVERALL PCE PRICE INDEX RISING BY 4.1 PER CENT IN MAY AND 3.4 PER CENT IN CORE PCE. THE INCREASE IN TARIFFS, THE RISE IN ENERGY PRICES CAUSED BY THE MIDDLE EAST CONFLICT AND THE INCREASED DEMAND FOR AI-RELATED HIGH-TECH PRODUCTS ARE AMONG OTHER FACTORS. THE UNITED STATES LABOUR MARKET WAS GENERALLY STABLE, WITH AN UNEMPLOYMENT RATE OF 4.2 PER CENT IN JUNE, WITH REAL GDP GROWING ANNUALLY BY 2.1 PER CENT IN THE FIRST QUARTER. FOMC HAS MAINTAINED INTEREST RATES BETWEEN 3.5 AND 3.75 PER CENT SINCE THE BEGINNING OF THE YEAR AND RE-EMPHASIZES PRICE STABILITY. THE REPORT ALSO INCLUDES ECONOMIC PROJECTIONS FOR JUNE: THE FEDERAL RESERVE OFFICIALS FORECAST A MEDIAN OF 3.6 PER CENT AND 3.3 PER CENT FOR PCE INFLATION AND CORE PCE INFLATION IN 2026, RESPECTIVELY, AND A MEDIAN OF 3.8 PER CENT AT THE END OF THE YEAR, HIGHER THAN THE 3.4 PER CENT FORECAST IN MARCH。