Consumer Prices Unchanged in May; Fed Holds Rates Steady | Business Matters Full Broadcast (June 12)

Don Ma
By Don Ma
June 12, 2024Business Matters
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U.S. consumer prices were unexpectedly unchanged in May as cheaper gasoline and other goods offset higher costs for rental housing, but inflation remains too high for the Federal Reserve to start cutting interest rates before September.

The Federal Reserve held interest rates steady on Wednesday and pushed out the start of rate cuts to perhaps as late as December, with officials projecting only a single quarter-percentage-point reduction for the year.

The European Commission said it will impose extra duties of up to 38.1 percent on imported Chinese electric cars from July, risking retaliation from Beijing, which said on Wednesday it would take measures to safeguard its interests.