economy
Core inflation hit an annual rate of 3.3% in April, as expected, Fed’s preferred gauge shows
The PCE price index for April was expected to show an annual inflation rate of 3.8% for all items and 3.3% for core.
TL;DR
- April's personal consumption expenditures (PCE) price index rose 0.4% month-over-month and 3.8% year-over-year.
- Core PCE prices, excluding food and energy, increased by 0.2% for the month and 3.3% annually.
- The annual inflation rates met economists' forecasts, but the monthly figures offered some hope of easing price pressures.
- First-quarter GDP growth was revised down to 1.6%, below initial estimates.
- Initial jobless claims rose slightly to 215,000 for the week ended May 23.
- Durable goods orders saw a significant surge of 7.9% in April.
- Consumer spending increased 0.5% in April, but income remained flat, and the savings rate fell to its lowest point since June 2022.
- Traders anticipate the Fed will keep interest rates unchanged until late 2026, with some expecting a rate hike in early next year.
- New Fed Chair Kevin Warsh believes interest rates could be lowered, potentially facing opposition.