Inflation remains flat in February; NAFCU’s Long predicts another rate cut
On a seasonally-adjusted basis, overall consumer prices increased 0.1 percent in February, matching January’s growth. The Bureau of Labor Statistics reported that the overall consumer price index (CPI) grew 2.3 percent over the 12-month period.
Based on the slowing growth and anticipated effects of the coronavirus on the economy, NAFCU Chief Economist and Vice President of Research Curt Long, in a new Macro Data Flash report, shared his expectation that the Federal Reserve will issue another 50-basis point rate cut during next week’s Federal Open Market Committee meeting.
Earlier this month, the Federal Reserve cut interest rates by 50 basis points in efforts to mitigate the potential economic effects of the coronavirus, setting the federal funds target rate at a range of 1 to 1.25 percent.
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