The Federal Reserve’s first-line inflation gauge is about to show some modest relief from stubborn price pressures, corroborating central bankers’ prudence about the timing of interest-rate cuts.
Treasury yields surged as data showing strength in US business activity and a tight labor market sparked traders to push back the timing for Federal Reserve interest-rate cuts until the end of this year.
Federal Reserve Bank of Atlanta President Raphael Bostic said monetary policy has been less effective in slowing growth than in previous cycles, reinforcing the need to keep rates higher for longer to curb inflation.
Federal Reserve officials earlier this month coalesced around a desire to hold interest rates higher for longer and “many” questioned whether policy was restrictive enough to bring inflation down to their target.
The Biden administration asserted its support for an independent Federal Reserve on Wednesday, after a report surfaced last month that Republican presidential candidate Donald Trump is assessing ways to exercise more control over U.S. monetary policy.
Treasuries fell for a third day on Monday, paring last week’s rally in US bonds on signs of easing inflationary pressures.
The Federal Reserve needs to do more to address issues that keep US banks from tapping a key emergency lending facility.
Every year, China gets closer to catching the U.S. as the world’s biggest economy. When it comes to their stock markets, however, there’s no contest. Since 1992, China’s GDP has grown 6.5 times as fast as America’s—but U.S. stock returns have been 3.5 tim
Inflation-related releases across the Group of Seven will prime central bankers for crucial June interest-rate decisions, just as they meet in Italy to discuss the state of the world economy.
The number of Americans filing new claims for jobless benefits fell last week, unwinding nearly half of the jump at the start of the month, indicating that labor market conditions remain fairly tight even as job growth is cooling.
Data this week offered the U.S. Federal Reserve good news on two fronts but policymakers havent openly shifted views yet about the timing of rate cuts investors are convinced will start this year.
The dollar skidded to multi-month lows on Thursday after U.S. core inflation hit its slowest in three years and retail sales turned flat, which pulled forward expectations for rate cuts in the worlds biggest economy.
On Wednesday, investors will digest one of the most important data points the Federal Reserve will consider in its next interest rate decision: Aprils Consumer Price Index (CPI).
Investors’ newfound optimism on the U.S. economy faces an important test on Wednesday, with consumer price data set to show whether the soft landing hopes that have fueled recent gains in equities are justified.
