At Extreme Investor Network, we are dedicated to bringing you the latest and most insightful information in the world of finance. Today, we are diving into the latest news surrounding Federal Reserve officials and their stance on interest rates in relation to inflation.
According to Bloomberg, Federal Reserve officials are expected to see evidence that progress against inflation has stalled. This data is likely to support a shift in tone towards keeping interest rates higher for a longer period than previously anticipated. This comes as the personal consumption expenditures price index, the policymakers’ preferred inflation gauge, is projected to stay elevated in March.
The core metric of the PCE price index is anticipated to rise slightly to 2.6% on an annual basis, driven in part by rising energy costs. While this data may not be as strong as the consumer price index, which exceeded expectations earlier this month, Federal Reserve Chair Jerome Powell and other officials have indicated that they will need more time to gain confidence in a downward trajectory of inflation before considering rate cuts.
In addition to the inflation data, March personal spending and income figures are also expected to be released. With healthy job growth, economists are projecting solid gains in household outlays for goods and services, as well as an acceleration in income growth.
Looking ahead, other key data points for the week include the government’s initial estimate of first-quarter growth, a composite gauge of activity at manufacturers and service providers, new-home sales, and the University of Michigan’s final April reading of consumer sentiment and inflation expectations.
The global economy is also in focus, with events such as the Bank of Canada’s summary of deliberations, the Bank of Japan’s decision, and inflation numbers from countries like Australia and Mexico on the calendar.
At Extreme Investor Network, we strive to provide you with unique and valuable insights into the world of finance. Stay tuned for more updates and analysis on the latest financial developments.
