Federal Reserve, Inflation and Donald Trump
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The Federal Reserve is likely to keep interest rates on hold in the near term following another inflation reading that didn’t make things any easier for the central bank. A new look at the Consumer Price Index (CPI) for the month of April showed that prices remained sticky despite some signs of cooling,
Tamer-than-expected inflation and a significant de-escalation of a U.S.-China trade war are easing fears of a sharp squeeze on American households and businesses in coming months, prompting Wall Street firms to pare predictions of a recession and giving the Federal Reserve room to leave interest rates where they are.
US Treasuries gained after a closely watched inflation report came in below expectations, offering support for wagers on at least two Federal Reserve interest-rate cuts this year.
News that the U.S. and China have drastically reduced reciprocal tariffs for 90 days as they continue trade talks has already put a dent in rate-cut expectations.
Inflation slowed to the lowest point in four years last month, but progress in reining it in will likely end there as higher tariffs start to push up the cost of consumer goods. The consumer price index climbed 2.
Inflation slows to its lowest in three years, offering relief to consumers with signs of price stabilization across sectors like food and energy.
Less than a week after President Donald Trump shocked the world with his massive “Liberation Day” tariff hikes, the former president of the St. Louis Fed, Jim Bullard, uttered a word on television that most economists reserve for their nightmares: Smoot-Hawley.
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The inflation backdrop improved in April, with a slight annual decrease reflected in the consumer-price index based on a 2.3% yearly rate. But that doesn't necessarily give the Federal Reserve an all-clear to cut rates next month,