The Federal Reserve's favorite inflation indicator remains high; lowering interest rates in the coming months may be hindered.

robot
Abstract generation in progress

ME News Report, April 9 (UTC+8), just before the outbreak of the Iran war, the Federal Reserve’s preferred inflation indicator maintained a steady and relatively rapid growth rate, highlighting the challenges the Fed faces in trying to curb stubborn price pressures. The US core PCE price index for February rose at an annual rate of 3.0%, the final value of the US Q4 real GDP annualized quarterly rate was 0.5%, and initial jobless claims for the week ending April 4 totaled 219k. After these economic data were released, the market reaction was muted. The Federal Reserve considers the PCE index to be the most accurate barometer of US inflation trends. The latest data indicates that inflation is still far from the Fed’s 2% target, and due to soaring oil prices, inflation may further increase in the short term. Persistently high inflation will also hinder the Fed from lowering interest rates at least in the coming months. (Source: ODAILY)

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin