Braking Down The News

April Inflation Report Cinches Fed’s Half-Point Rate Rise Path

Federal Reserve Chairman Jerome Powell had previously signaled plans to raise rates in larger increments in June and July

17

Another strong inflation reading in April is likely to keep pressure on the Federal Reserve to continue raising rates in increments of at least a half percentage point at the central bank’s coming policy meetings.

Wednesday’s report on consumer prices offered few signs that would give Fed officials comfort to dial back a more-aggressive pace of rate increases this summer. And it could lead more of them to conclude rates will need to rise closer to 4% over the next 12 to 18 months rather than to a level around 3% that most of them projected at their policy meeting two months ago.

 

Continue Reading…

 

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More