Anticipation for Inflation Data, Fed May Keep Rates High for Longer:
Federal Reserve officials stated they would not lower the key federal funds rate

This influences borrowing costs for all types of loans until inflation strongly trends down to 2%.
If early forecasts are correct, inflation will remain higher than Federal Reserve officials would like in April.

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Consumer Price Index Increase

Stable Inflation

Federal Reserve

Consumer Price Index Increase

The cost of living, as measured by the Consumer Price Index (CPI), is likely to rise by 3.4% year-over-year in April,
down from a 3.5% increase in March, according to a survey of forecasters conducted by Dow Jones Newswires and The Wall Street Journal,
ahead of the official numbers set to be released by the Bureau of Labor Statistics on Wednesday.
The “nowcast” prediction by the Cleveland Fed, which forecasts the CPI based on incoming economic data,
also called for a 3.5% annual increase as of Monday.

Prices rose faster than expected in the first three months of the year,
indicating a halt in the progress against inflation—which had significantly declined last year.

Stable Inflation

High inflation has been tough on household budgets because of higher prices like gas and groceries.
It forced the Federal Reserve to delay cutting its benchmark interest rate,
keeping rates high for all types of borrowing, like mortgages and credit cards.

Federal Reserve

The Federal Reserve might get the data it wants, but very slowly.
Officials said they are waiting for signs that inflation is on a strong downward trajectory before considering
lowering the federal funds rate from its highest level in 23 years, where it has been since last July.

However, core inflation, which excludes the volatile prices of food and energy and is closely
watched by economists as an indicator of overall inflation trends, is likely to rise by 0.3% for the month
if the agreed estimates are correct, down from 0.4% in March.

Economists found a reason for optimism in used car auctions, where wholesale prices dropped by 2.3% in April,
compared to a 14% year-over-year decline, according to data provider Manheim.
Used car prices make up a significant portion of overall inflation.
However, changes in wholesale used car prices typically affect inflation data with a few months’ delay.

Anticipation for Inflation Data, Fed May Keep Rates High for Longer

Anticipation for Inflation Data, Fed May Keep Rates High for Longer

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