The decline in US CPI was mainly caused by prior high base effect, lower energy and used car prices.
However, the sticky inflation is still very high in the US and the Fed is unlikely to reduce its rates in 2023.
The global fund manager survey in June 2023 also indicated that the US Fed won't reduce its rates in 2023.
What will the FED do for its FOMC meeting in June?
The Fedwatch tool is indicating a pause in rate hike for June.
Why?
This is because consumer demand is slowing down as the FED doesn't want to crash the US economy with more rate hikes unless it is absolutely urgent and necessary.
How do we know that the US economy is slowing down?
The cardboards are ubiquitous products and the demands have slowed down.
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