US retailer Target has reduced prices on more than 1,500 popular products, effective Monday.
- It promises “thousands of additional price cuts” (up to 5,000 times) in the future.
This is said to be in response to attracting “inflation-wary shoppers who are put off by rising prices”.
Information comes through many media reports, here is one of them:
If this leads to lower inflation rates it will be welcomed by the Fed. Right now, the prospect of a rate cut looks bleak, and these posts are from Monday alone:
- Bostic from the Fed: It will take some time before we are sure that inflation is heading to 2%
- Fed Governor Barr: First-quarter inflation was disappointing. It did not provide confidence to ease policy.
- Fed Governor Jefferson: Interest rates are in a restricted zone. Inflation remains stubborn.
- More from Fed Governor Jefferson: It's too early to say the April CPI has started a new trend
- San Francisco Fed President Mary Daly: I'm not yet confident that inflation will drop to 2%
- President of the Federal Reserve Bank of Cleveland. Meister: Monetary policy is constrained. The neutral rate may be higher
also:
- Wall Street Journal Timeros says Fed forecasts 6-month annual rate for core personal consumption expenditures inflation at 3.2%
- 6 reasons why markets are so optimistic about Fed rate cuts
This article was written by Eamonn Sheridan at www.forexlive.com.