Fed Expected to , Continue Raising Rates , Despite Inflation Easing.<br />In June, inflation in the United States hit 3%, <br />the lowest it has reached since March 2021. .<br />NPR reports that the news could be a sign <br />that the Federal Reserve's aggressive rate hikes <br />have made a noticeable impact on the economy.<br />Despite this, the Fed is expected <br />to continue taking action.<br />According to the Labor Department's <br />July 12 report, consumer prices <br />rose just 0.2% from May to June.<br />NPR reports that the rising cost of rent <br />and clothing was partially offset by dropping<br />prices for airfare, used cars and furniture.<br />NPR reports that the rising cost of rent <br />and clothing was partially offset by dropping<br />prices for airfare, used cars and furniture.<br />Last month, gas prices rose 1% but remain <br />about 26% below what they were last year, when prices reached an all-time high of over $5 per gallon.<br />In July, grocery prices remained flat, while <br />the cost of eating at restaurants increased by 0.4%. .<br />NPR reports that while inflation has slowly <br />started to ease, it remains higher than <br />what the Fed is looking to achieve. .<br />Later this month, the Fed is expected to raise <br />interest rates to reach its 2% target as <br />"core inflation" remains high, coming in at 4.8% in June.<br />Later this month, the Fed is expected to raise <br />interest rates to reach its 2% target as <br />"core inflation" remains high, coming in at 4.8% in June.<br />Interest rates are expected to jump <br />by a quarter percentage point at <br />the Fed's upcoming July meeting
