Fed's Inflation Fight Nears End, Price Pressures Expected to Ease in Second Half

Inflation Trends Begin to Cool

Senior strategist BeiChen Lin from Russell Investments notes that while the battle against inflation isn't fully won, signs suggest the Federal Reserve's efforts are nearing success, as labor markets stabilize and ease pressure on service-sector prices.

Tariff Impact Expected to Fade

The report highlights that inflationary pressures from trade tariffs are projected to diminish in the second half of the year, providing further relief to overall price levels.

Real Estate Remains Weak

Continued softness in the housing market, with subdued construction and sales activity, is also contributing to lower inflationary pressures.

Economic Growth and Inflation Outlook

Even if the U.S. economy maintains slightly above-trend growth this year, Lin anticipates inflation will remain manageable in the coming year, giving policymakers more flexibility.