Federal Reserve officials, who will end their latest policy meeting later Wednesday, are scrutinizing each month’s inflation data to assess their progress in their fight against rising prices.
The hotter-than-expected data complicates the overall picture of the labor market as Federal Reserve policymakers look for signs of a softening economy as an indication that inflation can come down enough to lower high interest rates later in the year.
Friday’s report also showed that income growth slowed and spending cooled sharply in April, a trend that could help moderate economic growth and inflation in the coming months.
Hopes for interest rate cuts this year by the Federal Reserve are steadily fading, with a stream of recent remarks by Fed officials underscoring their intention to keep borrowing costs high as long as needed to curb persistently elevated inflation.
Target is very cognizant of the spending pullback by shoppers amid high inflation. In March, it reported its first annual decline in sales in seven years.
Tuesday’s unexpectedly high readings may raise concerns on Wall Street, at the White House and for inflation-fighters at the Federal Reserve.
The coffee giant said revenue dropped 2% in the January-March period as store traffic slowed around the world. It was the first time since 2020 that the company saw a drop in quarterly revenue.
The Federal Reserve’s more cautious outlook stems from three months of data that pointed to chronic inflation pressures and robust consumer spending.
The figures highlight the toll stubborn price pressures, along with higher borrowing costs, are taking on consumers.
Despite cooling, the economy is still creating price pressures, a continuing source of concern for the Federal Reserve.
Americans boosted spending at a hotter-than-expected pace in March, underscoring how shoppers remain resilient despite inflationary pressures and other economic challenges.
The March figures, the third straight month of inflation readings well above the Fed’s 2% target, provide concerning evidence that inflation is stuck at an elevated level after having steadily dropped in the second half of 2023.
The unemployment rate fell to 3.8 percent last month, the Bureau of Labor Statistics reported Friday, extending the longest stretch of unemployment below 4 percent in five decades.
The allure of a hefty paycheck can be intoxicating. It’s easy to believe that more money equates to greater success or happiness. But the truth is, our perception of our own salary often shifts dramatically when compared with someone else’s.
Core prices rose just 2.8% from 12 months earlier in February—the lowest such figure in nearly three years—down from 2.9% in January.
With less than 50 days before polls close on the Hoosier State’s most competitive primary in decades, the Indiana Capital Chronicle will publish four issue-based question and answers with the six Republican candidates.
The financial markets cheered the message Wednesday from Jerome Powell and the Federal Reserve, with traders sending the Dow Jones industrial average surging 1%, to another all-time high.
Last month’s gain was weaker than expected, and January’s decline was revised even lower, suggesting that many are growing more cautious with their money.
Consumer prices in the United States picked up last month as inflation remains a persistent challenge for the Federal Reserve and for President Joe Biden’s reelection campaign, both of which are counting on a steady easing of price pressures this year.
Though inflationary pressures have significantly eased, average prices remain about 17% above where they stood three years ago.
