AI Generated Image
America In Focus: Fed officials divided on US inflation views; US home prices hit all-time high
AP News • • business
Key Points:
- The IMF downgraded its 2026 global economic growth forecast to 3%, citing the Iran war's energy shock, but expects growth to rebound to 3.4% in 2027; the U.S. economy is projected to grow 2.3% this year.
- U.S. existing home sales declined 2.4% in June, missing expectations, while median home prices hit a record high of $440,600, continuing a 36-month streak of annual price increases and exacerbating affordability challenges.
- Federal Reserve officials remain divided on inflation outlook and interest rate policy, with half supporting rate hikes by year-end and the other half favoring unchanged or lower rates, reflecting uncertainty tied to the Iran war's economic impact.
- The International Energy Agency forecasts a 1 million barrels per day drop in global oil demand in 2026, the first decline since 2020, driven mainly by disruptions in Asia due to the Iran war, while U.S. gasoline use rose despite high prices.
- U.S. jobless claims slightly decreased to 215,000 last week, indicating a still-tight labor market, though the June jobs report showed a significant slowdown in hiring, signaling cautious employer sentiment amid economic uncertainties.
