Good news for American consumers
The US stock market quickly reacted positively to fresh news about the country’s inflation rate statistics.
Inflation in the US has reached 2.9%, which is the lowest level since 2021.
Housing and rent rates, which are significant factors in the increase of interest rates in the US, have also seen slower growth.
Mortgage rates in the US have decreased, creating more hope for home seekers. The news of the reduction in inflation rates in the US was accompanied by a slight increase in inflation in the UK. It should be noted that the fluctuation of energy prices in the US is more controllable than in the UK.
UK stock markets also did not react negatively to this trend. Investors’ hopes in the stock market for the Federal Reserve to lower interest rates have increased, and concerns about an economic recession are no longer serious. The Federal Reserve might not significantly reduce interest rates.
This good news is likely to frustrate Trump on the day he is set to deliver his economic speech.