US (dis?) inflation – Target to cut prices on another 5000 items

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.

CutDISInflationItemsPricestarget
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