BusinessPostCorner.com
No Result
View All Result
Sunday, July 13, 2025
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources
BusinessPostCorner.com
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources
No Result
View All Result
BusinessPostCorner.com
No Result
View All Result

Fed’s preferred inflation metric remains at 2.7% in April

May 31, 2024
in Finance
Reading Time: 2 mins read
A A
0
Fed’s preferred inflation metric remains at 2.7% in April
ShareShareShareShareShare

Stay informed with free updates

Simply sign up to the US inflation myFT Digest — delivered directly to your inbox.

US inflation held at 2.7 per cent in the year to April, according to the metric the Federal Reserve uses to set its target for price pressures.

Friday’s data on personal consumption expenditures index was in line with economists’ expectations that inflation would remain the same as in March.

The Fed’s target for headline PCE index is 2 per cent.

Core PCE, which ignores changes in food and fuel prices, was 2.8 per cent, also in line with expectations.

The monthly headline figure was 0.3 per cent and the core figure 0.2 per cent.

Fed officials’ next rate-setting vote is on June 12. They are expected to say that they need more data on inflation before lowering borrowing costs from their current 23-year high of 5.25 to 5.5 per cent.

Investors think the data leaves US rate-setters just about on track to cut rates ahead of US presidential elections in November, providing a potential boost for current White House incumbent Joe Biden.

Markets expect one quarter-point cut this year, with a slightly more than 50 per cent chance of the first being in September — the final policy decision ahead of the election.

The data, published by the Bureau of Economic Analysis, also showed US shoppers are reining in their spending, with real consumption expenditures falling 0.1 per cent.

“Everything suggests that consumer is and should be slowing — you’ve got high interest rates, a labor market that’s coming off the boil and prices going up,” said Sameer Samana, senior global market strategist at Wells Fargo. “If anything, it’s maybe showing up a little bit later than we anticipated.”

The Fed is “likely to be a bit relieved with this number, but not satisfied by any means”, Point72 chief economist Dean Maki said.

“It’s not easy to have a high conviction view on the Fed policy because the Fed itself doesn’t really know what it is going to do,” Maki continued. “It really depends on these month-on-month core inflation prints, which have been quite volatile in recent months.”

US stocks opened higher on Friday after the release of April’s PCE data, but reversed course as tech stock-led sell-off took hold. Wall Street’s S&P 500 was down 0.7 per cent during lunchtime trading, while the tech-heavy Nasdaq Composite was down 1.5 per cent. Both indices remained on course for their first weekly decline since mid-April.

In government bond markets, the policy-sensitive two-year Treasury yield slipped 0.04 percentage points lower to 4.89 per cent, while the benchmark 10-year yield fell 0.05 percentage points to 4.51 per cent. Falling yields reflect rising prices.

Additional reporting by Martha Muir in Washington

Credit: Source link

ShareTweetSendPinShare
Previous Post

On the move: NJCPA hosts inaugural Accelerating Scholars in Accounting event

Next Post

Pathways to Growth: Building a sales function in an accounting firm

Next Post
Pathways to Growth: Building a sales function in an accounting firm

Pathways to Growth: Building a sales function in an accounting firm

BDO USA names Matt Becker next CEO

BDO USA names Matt Becker next CEO

July 9, 2025
National Trust blames tax rises as it cuts 550 jobs

National Trust blames tax rises as it cuts 550 jobs

July 11, 2025
The machine-human workforce is here. How must leadership shift?

The machine-human workforce is here. How must leadership shift?

July 11, 2025
7 best CRM software for staffing agencies

7 best CRM software for staffing agencies

July 9, 2025
Apple loses its top AI models executive to Meta’s hiring spree

Apple loses its top AI models executive to Meta’s hiring spree

July 7, 2025
Bitcoin Price Prediction: The Dollar’s Dip, BTC’s Rise – Is 0,000 Within Reach This Year?

Bitcoin Price Prediction: The Dollar’s Dip, BTC’s Rise – Is $300,000 Within Reach This Year?

July 12, 2025
BusinessPostCorner.com

BusinessPostCorner.com is an online news portal that aims to share the latest news about following topics: Accounting, Tax, Business, Finance, Crypto, Management, Human resources and Marketing. Feel free to get in touch with us!

Recent News

UniCredit attacks Italian government’s ‘illegitimate’ use of power over BPM bid

UniCredit attacks Italian government’s ‘illegitimate’ use of power over BPM bid

July 13, 2025
EU delays retaliatory trade tariffs against US

EU delays retaliatory trade tariffs against US

July 13, 2025

Our Newsletter!

Loading
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2023 businesspostcorner.com - All Rights Reserved!

No Result
View All Result
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources

© 2023 businesspostcorner.com - All Rights Reserved!