Morningstar on Nostr: Inflation is heading higher again. Is it a 'bump' in the road or something more? ...
Inflation is heading higher again. Is it a 'bump' in the road or something more?
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The article discusses the recent increase in inflation and its potential impact on U.S. interest rates. Federal Reserve Chair Jerome Powell expects inflation to continue to slow, but acknowledges there may be 'bumps' on the road to the Fed's goal of 2% annual inflation. The Fed's preferred inflation gauge, the personal-consumption expenditures (PCE) price index, rose 0.3% in February following a 0.4% gain in January. Some economists and senior Fed officials believe inflation will have to slow further before the central bank cuts rates. Wall Street is betting on a rate cut in June, but July or later is also possible. The strength of the U.S. economy, including consumer spending and GDP growth, is a factor in the decision-making process. The March employment report is expected to show another solid increase in hiring. Despite concerns about inflation, the economy remains sturdy and a recession is not currently anticipated. Top Wall Street economists forecast steady U.S. growth in 2024 and believe the Fed will cut interest rates three times this year. The next consumer-price index will be released on April 10.
#Inflation #InterestRates #FederalReserve #UsEconomy
https://www.morningstar.com/news/marketwatch/20240329334/inflation-is-heading-higher-again-is-it-a-bump-in-the-road-or-something-more
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The article discusses the recent increase in inflation and its potential impact on U.S. interest rates. Federal Reserve Chair Jerome Powell expects inflation to continue to slow, but acknowledges there may be 'bumps' on the road to the Fed's goal of 2% annual inflation. The Fed's preferred inflation gauge, the personal-consumption expenditures (PCE) price index, rose 0.3% in February following a 0.4% gain in January. Some economists and senior Fed officials believe inflation will have to slow further before the central bank cuts rates. Wall Street is betting on a rate cut in June, but July or later is also possible. The strength of the U.S. economy, including consumer spending and GDP growth, is a factor in the decision-making process. The March employment report is expected to show another solid increase in hiring. Despite concerns about inflation, the economy remains sturdy and a recession is not currently anticipated. Top Wall Street economists forecast steady U.S. growth in 2024 and believe the Fed will cut interest rates three times this year. The next consumer-price index will be released on April 10.
#Inflation #InterestRates #FederalReserve #UsEconomy
https://www.morningstar.com/news/marketwatch/20240329334/inflation-is-heading-higher-again-is-it-a-bump-in-the-road-or-something-more