Monetary Policy Reaches a Turning Point
With a series of rate cuts rolled out since 2024, U.S. monetary policy is gradually returning to equilibrium. Senior Fed officials indicated that the current policy rate has settled into a range consistent with neutral economic conditions, marking the effective end of the tightening cycle.
Inflation Outlook Gains Clarity
While supply chain fluctuations and energy price volatility remain potential upside risks, core inflation continues to show sustained moderation, bolstering policymakers' confidence. The Fed expects inflation to steadily approach the 2% target over the coming quarters.
- Rate adjustments have delivered intended effects
- Labor market remains resilient without overheating
- Consumer spending patterns are normalizing
This assessment reflects growing optimism about a soft landing and provides room for policy flexibility ahead.