Inflation Remains Steady, Fed Not Cutting Rates 

The Consumer Price Index held steady in May after increasing 0.3% in April, according to the U.S. Bureau of Labor Statistics. Over the last 12 months, the-all items index increased 3.3% before seasonal adjustment, down slightly from the 3.4% increase for the 12 months ending in April. The index for shelter rose by .4% for the fourth consecutive month and more than offset a decrease in gasoline prices. Click here for the press release. 

Inflation continues to remain above the Federal Reserve’s 2% annual inflation target and yesterday the agency announced that it is not yet ready to start cutting rates. Instead, the agency is taking a wait and see approach to see if inflation rates will further decrease before deciding to make cuts.  

What does this mean for your township? Now is the time to take advantage of high interest rates for investing township funds. Ask your bank for competitive rates on township funds or take advantage of Pennsylvania Local Government Investment Trust (PLGIT) interest rates, which is a PSATS Premier Partner.   

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