Fed will take longer to cut rates

After several unexpectedly high inflation readings, Federal Reserve officials concluded at a meeting earlier this month that it would take longer than they previously thought for inflation to cool enough to justify reducing their key interest rate, now at a 23-year high. Minutes of the meeting showed that officials also debated whether their benchmark rate was exerting enough of a drag on the economy to further slow inflation. Many officials noted that they were uncertain how restrictive the Fed’s rate policies are.

U.S. poised to preserve heavy tariffs

President Joe Biden and Donald Trump agree on essentially nothing, from taxes and climate change to immigration and regulation. Yet on trade policy, the two presumptive presidential nominees have embraced surprisingly similar approaches. Which means that whether Biden or Trump wins the presidency, the United States seems poised to maintain a protectionist trade policy — a policy that experts say could feed inflation pressures. The protectionist tilt of the two presidential contenders reflects the widespread view that opening the nation to more imports — especially from China — wiped out American manufacturing jobs and shuttered factories.

Target sales decline, but it sees improvement

Target is reporting a decline in quarterly revenue as still-stubborn inflation cuts into shoppers’ spending. The Minneapolis retailer also delivered a muted profit outlook on Wednesday. But it said it expects it will get back to quarterly sales growth in the current quarter. The fiscal first-quarter report comes as Target is looking for ways to reverse a sales malaise. On Monday, it announced plans to cut prices on thousands of consumer basics this summer, from diapers to milk. Target reported net income of $942 million in the quarter ended May 4. The company’s revenue slipped 3.1% to $24.53 billion, from $25.32 billion. Analysts were expecting $2.06 per share on revenue of $24.51 billion.

U.S. home sales drop 1.9% in April

Sales of previously occupied U.S. homes sank last month, pushed down by high mortgage rates and rising prices. The National Association of Realtors reported Wednesday that existing home sales fell 1.9% to a seasonally adjusted annual rate of 4.14 million from a revised 4.22 million in March. The median price of a previously occupied homes rose 5.7% to $407,600 — the tenth straight increase and a record for April.

Smart devices get first cybersecurity labels

Smart devices like baby monitors, fitness trackers and internet-connected appliances will soon be eligible for labels certifying that they meet federal cybersecurity standards. Federal officials said Wednesday that the first “Cyber Trust” labels could appear in time for the holiday shopping season.