For more than a year now, Federal Reserve officials have sought to tame inflation with a string of aggressive interest rate hikes, even as Wall Street warned that their policies could end up sparking a recession. But now, the Fed’s resolve amid the doomsday warnings appears to be paying off. The latest consumer price index (CPI) data shows their policies are helping to slowly return price stability to Americans. Year-over-year inflation fell for the 11th straight month to just 4% in May, the Bureau of Labor Statistics reported Tuesday.
“The nearly 1% move lower in inflation from April to May is a feather in the cap for the Fed, which appears to be achieving its mandate of widespread price stability,” Peter Essele, head of portfolio management at the RIA-independent broker/dealer Commonwealth Financial Network, told Fortune.
