Inflation just posted its most encouraging number in years. The Fed chair would like everyone to calm down about it.
Kevin Warsh, who took the helm at the Federal Reserve less than two months ago, delivered his first congressional testimony on July 14, and the message was unmistakable: one favorable CPI report does not mean the inflation fight is finished.
The numbers look good, but Warsh isn’t celebrating
June’s Consumer Price Index came in at 3.5% year-over-year, a sharp drop from May’s 4.2% reading. Monthly prices actually fell 0.4%, marking the first month-over-month decline in six years.
Lower energy costs drove most of the improvement. In other words, cheaper gas did a lot of heavy lifting here.
