US June PMI Continues to Rise, But Cost Pressures Intensify Changing Fed's Rate Cut Outlook
According to the latest data, the Purchasing Managers' Index (PMI) in the US for June continues to show an upward trend, but there is also a rise in cost pressures, which could introduce new variables into the Federal Reserve's (Fed) plans for interest rate cuts.
The increase in the PMI is typically viewed as a sign of improving economic activity; however, with rising costs, businesses may face greater challenges. The increased cost pressures might prompt the Fed to exercise caution when considering rate cuts, as it may affect the control of inflation rates.
Market observers will closely monitor the Fed's future policy decisions and how it responds to these changes, particularly in balancing economic growth and inflation control.
