Will the recent decline in inflation impact the path of US monetary policy rates in the near term? Inflation has received increased focus this year as the US Federal Reserve (Fed) prepares for “lift-off”, with one leg of their dual mandate below target. Inflation data has drifted lower, potentially impacting long-term price stability. This has occurred despite persistent strength in labor markets leading some to speculate that global deflationary forces have migrated to US soil.
