|
Finance
|
Federal Reserve's Inflation Gauge and Market Expectations
2024-04-26 20:09:11

Federal Reserve's Inflation Gauge and Market Expectations

Recent data regarding the Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures index, indicates persistent high inflation rates in March, complicating the possibility of rate cuts by the Federal Reserve. This development has influenced investor sentiment, leading to Treasury yields rising and stocks falling.

Market expectations for rate cuts have shifted, with analysts now speculating on the timing and likelihood of any reductions, as economic growth slows and inflation remains a concern. The uncertainty surrounding rate adjustments has caused reevaluation of expectations, with some even contemplating the potential for a rate hike amidst the current economic landscape.

Related news on that topic:

Understanding the Impact of Inflation on US Economic Growth and ... Cut Expectations

The recent headlines highlight a significant slowdown in US economic growth to a nearly two-year low, accompanied by a spike in inflation rates exceeding expectations. This combination raises concerns about stagflation, leading to doubts about potential interest rate cuts by the Federal Reserve. With inflation pressures persisting and growth decelerating, the Fed is cautious about reducing rates, impacting market expectations. The Fed's preferred inflation gauge, the Personal Consumption Expenditures index, has shown a persistent rise, exceeding Wall Street's expectations and dampening hopes for rate cuts this year. As inflation remains above the 2 percent target, the Fed may postpone rate cuts, potentially reassessing future decisions and delaying any cuts until later in the year. Market experts suggest that rate cuts, if any, may not occur until late 2024, affecting investors' bets and stock market dynamics.

Understanding the Impact of Rising Inflation on the US Economy ... Monetary Policy

The US economy has experienced a slower growth rate in the first quarter, alongside a spike in inflation above estimates. This unexpected increase in inflation has raised concerns in the market, leading to a rise in Treasury yields and a drop in major stock indexes. The Federal Reserve's hesitation to cut interest rates is fueled by the persistent inflation, with market expectations for rate reductions decreasing. As the Fed's preferred inflation gauges continue to remain above target, the possibility of rate cuts is pushed further away, potentially impacting future economic decisions. Investors are bracing for the repercussions of mounting inflation worries, with expectations of Treasury yields hitting a 16-year high and fixed income allocations at their lowest level since 2003.

Read 13 more recent news on this topic

The press radar on this topic:

The Street
28. April 2024 um 00:46

U.S. growth slowdown, with inflation spike, raises early stagflation risks

Economy
Finance
The U.S. economy experienced a significant growth slowdown in the last quarter, expanding at an annualized rate of 1.6% compared to the previous quarter's 3.4%. This slowdown, coupled with a spike in inflation, has raised concerns of stagflation. As inflation pressures remain elevated and growth decelerates, the Federal Reserve is being cautious about rate cuts, and market expectations for rate reductions have decreased.
The Street
29. April 2024 um 12:46

Thought the Fed would give us an interest-rate break in '24? Think again

Finance
Economy
The Federal Reserve may be reluctant to cut interest rates in 2024 due to signs of resurgence in inflation. The first-quarter Gross Domestic Product report showed slowing economic growth but stronger-than-expected inflation. Investors and traders were expecting rate cuts, but now the betting is maybe two, with the first in November.
The Street
29. April 2024 um 16:46

Stock Market Today: Google surge powers tech as markets eye inflation data

Finance
Technology
Economy
US equity futures are higher as investors await a crucial inflation reading and tech stocks, such as Alphabet and Microsoft, post strong earnings. The market's modest advance for the week is expected to be maintained. Intel shares slumped after lower-than-expected Q1 earnings, while Chevron beat profit forecasts thanks to higher production volumes.
New York Times - Business
26. April 2024 um 20:07

The Fed’s Favorite Inflation Index Remained Stubborn in March

Economy
Finance
The Federal Reserve's key inflation gauge showed stubbornness in March, indicating that price increases are lasting longer than expected, potentially delaying interest rate cuts. Market expectations for rate reductions have decreased as inflation remains above the Fed's 2 percent target, prompting policymakers to reassess future rate decisions. Despite solid economic growth, some economists speculate on the possibility of the Fed raising rates again in the future.
CW

Account

Waiting list for the personalized area


Welcome!

InfoBud.news

infobud.news is an AI-driven news aggregator that simplifies global news, offering customizable feeds in all languages for tailored insights into tech, finance, politics, and more. It provides precise, relevant news updates, overcoming conventional search tool limitations. Due to the diversity of news sources, it provides precise and relevant news updates, focusing entirely on the facts without influencing opinion. Read moreExpand

Spotlighting today's most mentioned stocks in the media. Uncover the stories making waves in the stock market:

A closer look at the individuals who are leading today's news narratives. Find out what makes them the center of attention.

Exploring the five locations receiving the most media attention in the last 24 hours. Discover what puts these places in the global spotlight

Your World, Tailored News: Navigate The News Jungle With AI-Powered Precision!

News

All News
Politics
Technology
Economy
Business
Climate

About

About Us
Team + Mission

Legal

Cookie Settings
Disclaimer
Legal Notice
Data Privacy

Contact

Contact