Fed governors still talking tough on inflation

Fed-repo

Officials at the US Federal Reserve have been taking a tough line on the need for more large rate increases, though several new inflation figures give some cause for optimism.

In welcome news for the Fed, US consumer inflation expectations dropped across the board in July. Data released on August 8 showed median one-year-ahead inflation expectations fell to 6.2% from 6.8% in the previous month. Three-year expectations dropped to 3.2% from 3.6%. Inflation uncertainty at both time horizons

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