Inflation cools down, Fed may raise interest rates for the last
In general, inflation data in June 2023 can help the Fed "breathe a sigh of relief". However, central bank officials often focus more on core inflation, which is still well above the Fed's 2% target.
As core inflation remains more than double the Fed's 2% target, traders believe the Fed will raise rates by 25 basis points at its meeting on July 25-26, 2023. However, they think the probability of the Fed raising one more time is quite low, about 25%, down from more than 33% before.
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