Inflation Slows, Remains Key Election Issue

The U.S. economy is showing signs of optimism as inflation rates have decreased, reaching a three-year low of 2.5% in the past year. Consumer sentiment has improved, with Americans perceiving better buying conditions and a decline in inflation expectations for the fourth consecutive month. However, concerns remain regarding the high cost of housing and its impact on voters, with 81% indicating the economy is a key factor in the presidential election. During a recent debate, President Trump criticized the Biden administration for high prices, while Vice President Harris proposed tax cuts to alleviate housing costs. Economists note that while inflation has slowed, the overall economic landscape remains challenging, particularly for those most affected by rising prices. As the Federal Reserve prepares to potentially lower interest rates, the balance of the job market and inflation control will be crucial for future economic stability.