PCE Inflation Surges Further Away from Fed’s Target, now Nearly Double the Fed’s Target, and 5+ Years above Target
Businesses exercising pricing power and AI-driven demand fueled surging energy, food, and services inflation, pushing PCE to 3.8%, nearly double the Fed's target.
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6 Articles
US inflation figures turned out slightly lower. But the drop from 3.9 to 3.8 percent is, according to macroeconomist Edin Mujagic, 'a windfall on the margins,' because the ultimate goal of the US central bank, the Fed, is an inflation rate of 2 percent. 'This is light years away from that, so I expect interest rates will go up again.’ The Fed has recently been led by Kevin Warsh.
Inflation Is Not Going Away
The latest PCE inflation report confirmed exactly what I have warned. Inflation was never “transitory,” and the Federal Reserve has completely lost control of the narrative. The Fed’s preferred inflation gauge, core PCE, rose 3.3% annually in April, up from 3.2% in March and well above the Fed’s mythical 2% target. Headline PCE inflation accelerated...
PCE Inflation Surges Further Away from Fed’s Target, now Nearly Double the Fed’s Target, and 5+ Years above Target
Trend reversal started a year ago. Services inflation stuck at high rate for a year. Now prices of food, energy, computers & software (inflationary AI boom), and gold jewelry (gold price spike) all surged.
PCE Report: Inflation Up in April, Making Rate Cuts Less Likely
Inflation in April rose to 3.8% year-over-year, up from 3.5% in March, according to the Personal Consumption Expenditures (PCE) Index, released May 28, which is the Federal Reserve’s preferred gauge of inflation. That likely puts a damper on the Fed lowering interest rates, as their stated goal has always been to have inflation around 2%.… The post PCE Report: Inflation Up in April, Making Rate Cuts Less Likely appeared first on RISMedia.
US inflation rises to 3.8% in April, highest level in nearly 3 years
The PCE price index, which is the US Federal Reserve's primary measure of inflation, increased 0.4 per cent from the previous month and 3.8 per cent from a year earlier in April. Excluding food and energy prices, the core PCE price index rose 0.2 per cent month-on-month and 3.3 per cent year-on-year, the BEA said.
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