US Inflation Is Set to Fade in 2024 as Goods Prices Keep Falling
- Thursday’s CPI report will give preview of coming disinflation
- Fed will reduce interest rates but Biden may not reap benefits
US inflation is set to further recede in 2024, ending the year near the Federal Reserve’s 2% target as economic disruptions from the pandemic fade further and prices of some goods even decline.
The downdraft should keep the US central bank firmly on course for lower interest rates, with cuts expected to come as soon as March. President Joe Biden, for his part, may have a harder time capitalizing politically on the campaign trail, especially if lower inflation comes alongside a broader slowdown in the economy.