Fed’s Calm Before Storm? Analyst Sees Inflation as Temporary

Fitch analyst Olu Sonola suggests the Federal Reserve may view the recent moderation of personal consumption expenditure inflation as a temporary respite before potentially more aggressive action. According to Sonola, the Fed is likely to maintain its current strategy of observing market conditions and only adjusting policy based on significant changes in consumer spending and job market data. He highlighted, ‘This report indicates that American consumers remain resilient during challenging times.’