Fed FOMC Statement Maintains Inflation Language, Removes Supply Shock Reference

The Federal Reserve's FOMC statement maintained language indicating inflation remains at a high level, but removed references to supply shocks. According to Reuters, the Fed kept its assessment that inflation is above the 2% target in its statement released on June 16. However, the previous explanation that supply shocks had driven price increases in certain items was omitted. The Fed had previously cited supply shocks in energy and other sectors as contributing to inflation exceeding the target in its June statement. Whether this wording change will impact future monetary policy paths remains to be confirmed.