U.S. Inflation Falls Below 3% for First Time Since 2021, Paving Way for Potential Fed Rate Cuts

In July, the Consumer Price Index (CPI) slowed to 2.9% year-over-year, marking the first time it has fallen below 3% since March 2021. This decrease suggests inflation is under control, potentially allowing the Federal Reserve to reduce interest rates after a prolonged period of hikes. The slower inflation, driven largely by stabilizing housing costs, has eased pressure on the economy, despite ongoing concerns about the labor market. The Federal Reserve is now expected to cut rates in its next meeting, with predictions ranging from a quarter-point to a half-point reduction.

Inflation milestone: Consumer Price Index slows below 3% for first time since March 2021 | CNN Business