Fed’s preferred inflation gauge shows price pressures stayed elevated last month
A measure of inflation closely tracked by the Federal Reserve remained uncomfortably high in March, likely reinforcing the Fed’s reluctance to cut interest rates anytime soon and underscoring a burden for President Joe Biden’s re-election bid.
The Fed’s preferred inflation gauge just moved in the wrong direction
While both indexes are much lower than they were at their peaks (7.1% PCE inflation in June 2022, 5.6% for core in February 2022), they also remain stuck above the Fed’s 2% target. After 11 rate hikes in two years, the Fed has been on hold and eyeing potential rate cuts for this year.
Inflation gauge still too hot in March
"The hot inflation readings through March should write off any rate cuts in the first half of 2024," said Nationwide Senior Economist Ben Ayers. "There is also a risk that the further economic resilience pushes off any rate declines until 2025, a key downside risk for growth next year."
The key Federal Reserve inflation rate, the core PCE price index, reared up in Q1 as GDP grew at a slower pace.
US economic growth slid to an almost two-year low last quarter while inflation jumped to uncomfortable levels, interrupting a ...
Brazil’s inflation cooled more than expected in early April, but fell short of soothing policymakers’ fears about lingering ...
US economy disappointed in growth, but inflation exceeded predictions, causing stagflation. Experts warn of negative impact ...
These gains are set to offset recent market losses, despite economic concerns over slow growth and rising inflation. Investors are staying focused on upcoming earnings and key inflation data. The yen ...
US bond yields retreated from their highest levels since November as the PCE print came in less hot than feared.
Some results have been hidden because they may be inaccessible to you
Show inaccessible results
Feedback