Sport Investors League
  • Politics
  • Stocks
  • Investing
  • Business

Sport Investors League

  • Politics
  • Stocks
  • Investing
  • Business
Business

The Fed’s preferred inflation measure rose 0.2% in April, as expected

by admin June 1, 2024
June 1, 2024
The Fed’s preferred inflation measure rose 0.2% in April, as expected

Inflation rose about as expected in April, with markets on edge over when interest rates might start coming down, according to a measure released Friday that is followed closely by the Federal Reserve.

The personal consumption expenditures price index excluding food and energy costs increased just 0.2% for the period, in line with the Dow Jones estimate, the Commerce Department reported.

On an annual basis, core PCE was up 2.8%, or 0.1 percentage point higher than the estimate.

Including the volatile food and energy category, PCE inflation was at 2.7% on an annual basis and 0.3% from a month ago. Those numbers were in line with forecasts.

Fed officials prefer the PCE reading over the more closely followed consumer price index, which the Labor Department compiles. The Commerce Department measure accounts for changes in consumer behavior such as substituting less expensive items for costlier alternatives, and has a wider scope than the CPI.

“The core index came in at 2.8%. That’s fine, but it’s been trading in a range for five months now, and that’s pretty sticky to me,” said Dan North, senior economist for North America at Allianz Trade. “If I’m [Fed Chair Jerome] Powell, I’d like to see that start moving down, and it’s barely creeping. … I’m not reaching for the Pepto yet, but I’m not feeling great. This is not what you want to see.”

A 1.2% rise in energy prices helped push up the headline increase. Food prices posted a 0.2% decline on the month.

Goods prices rose 0.2% while services saw a 0.3% increase, continuing a normalization trend for an economy in which services and consumption provide much of the fuel.

Along with the inflation reading, Friday’s release included data about income and spending.

Personal income increased 0.3% on the month, matching the estimate, while spending rose just 0.2%, below the 0.4% estimate and off March’s downwardly revised 0.7%. Adjusted for inflation, the spending numbers showed a 0.1% decline, due in large part to a 0.4% decrease in spending on goods and just a 0.1% rise in services expenditures.

Market reaction following the release saw futures tied to major stock averages rising while Treasury yields moved lower.

“The PCE Price Index didn’t show much progress on inflation, but it didn’t show any backsliding, either. Based on the initial reaction in stock index futures, the market will see it mostly as a positive,” said Chris Larkin, managing director of trading and investing for E-Trade from Morgan Stanley.

“Investors will have to remain patient, though,” he added. “The Fed has suggested it will take more than one month of favorable data to confirm inflation is reliably moving lower again, so there’s still no reason to think a first rate cut will come any earlier than September.”

As inflation data has come in hotter than expected, central bank officials have encouraged a cautious approach. That means less likelihood that they will be cutting rates anytime soon.

Most recently, New York Fed President John Williams said Thursday that while he is confident inflation will continue to recede, prices are still too high and he has not seen sufficient progress on moving to the Fed’s 2% annual goal.

Markets have reined in their expectations for rate reductions this year. Pricing Friday morning indicated a probability that the first move likely won’t come until November, at the Fed’s meeting that concludes two days after the presidential election.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
N.Y. Fed President John Williams says inflation is too high but will start coming down soon
next post
Top adviser recommends against Elon Musk’s $56B Tesla pay package

Related Posts

U.S. farm agency allows six more states to...

August 6, 2025

Dollar stores are struggling to win over bargain...

December 5, 2024

Tesla investors want Elon Musk to answer questions...

January 31, 2025

Credit card startup Imprint beats big banks for...

July 24, 2025

The Fed may soon cut interest rates. That...

July 11, 2024

From American Eagle to Swatch, why brands seem...

August 26, 2025

Amazon is stepping up to fill a gap...

May 2, 2025

Amazon lays off over 100 employees in Wondery...

August 6, 2025

Elon Musk confirms Tesla has signed a $16.5...

July 29, 2025

Things are getting better at Boeing under CEO...

July 29, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent

    • ‘Doctor Strangelove with a mustache’: Bolton blasted for ‘profiteering’ off US secrets by White House advisor

      August 27, 2025
    • EPA urged to axe funds for ‘radical’ climate project accused of training judges, state AGs rally

      August 27, 2025
    • Bolton may be in hot water as FBI investigation expands beyond controversial book

      August 27, 2025
    • EPA urged by state AGs to axe funds for ‘radical’ climate project accused of training judges

      August 27, 2025
    • Intel rival SkyWater pitches itself as all-American firm as Trump mulls more equity deals

      August 27, 2025

    Categories

    • Business (1,083)
    • Investing (2,915)
    • Politics (3,567)
    • Stocks (1,155)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sportinvestorsleague.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 sportinvestorsleague.com | All Rights Reserved