Joseph Brusuelas’ Post

"US Inflation Gauge Seen Bolstering Fed Patience on Rates" The Federal Reserve’s preferred measure of underlying US inflation probably remained uncomfortably high in February, showing why central bankers are wary about cutting interest rates too soon. While not derailing the Fed's plans for rate cuts, this data suggests inflation is not cooling off as quickly as hoped. This contrasts with late 2023 when inflation seemed to be nearing the target level. The upcoming PCE report is also expected to show stronger consumer spending. Source: Bloomberg BistInvest Comment: High February inflation data throws cold water on the Fed's planned rate cuts. Stubborn inflation forces them to prioritize price control over stimulating growth, likely delaying rate cuts until they see a clearer downtrend. www.BistInvest.com #BistInvest #Investment #USA #Inflation #CorePCEHigh #InflationSurprise #FedCautious #RateCutDelay #StrongConsumerSpending #HealthyEconomyChallenge #BalancingAct #InflationControl #GrowthConcerns #StagflationRisk

Progress toward the Fed’s 2% inflation target continues to stall, as the Fed’s favored measure, annual Core PCE, remained at 2.8% for the 12 months ending in March. While this was below 2022’s 5.6% peak, inflationary pressures remain stubborn. All eyes will be on the Fed’s May 1 meeting for clues regarding how this might impact their timing for cutting rates this year. #pce #inflation #mbshighway #mbssocialshare #mortgagemarketnews #mortgageintheknow

Progress toward the Fed’s 2% inflation target continues to stall, as the Fed’s favored measure, annual Core PCE, remained at 2.8% for the 12 months ending in March. While this was below 2022’s 5.6% peak, inflationary pressures remain stubborn. All eyes will be on the Fed’s May 1 meeting for clues regarding how this might impact their timing for cutting rates this year. #pce #inflation #mbshighway #mbssocialshare #mortgagemarketnews #mortgageintheknow #thatcherhomeloans

Progress toward the Fed’s 2% inflation target continues to stall, as the Fed’s favored measure, annual Core PCE, remained at 2.8% for the 12 months ending in March. While this was below 2022’s 5.6% peak, inflationary pressures remain stubborn. All eyes will be on the Fed’s May 1 meeting for clues regarding how this might impact their timing for cutting rates this year. #pce #inflation #mbshighway #mbssocialshare #mortgagemarketnews #mortgageintheknow

https://lnkd.in/gMUmxHGZ Progress toward the Fed’s 2% inflation target continues to stall, as the Fed’s favored measure, annual Core PCE, remained at 2.8% for the 12 months ending in March. While this was below 2022’s 5.6% peak, inflationary pressures remain stubborn. All eyes will be on the Fed’s May 1 meeting for clues regarding how this might impact their timing for cutting rates this year. #pce #inflation #mbshighway #mbssocialshare #mortgagemarketnews #mortgageintheknow

Inflation metrics such as the CPI and PCE play a critical role in shaping both personal finances and broader economic strategies. While the CPI makes headlines, the Fed relies on the PCE to guide policy decisions. Understanding the differences between these parameters is essential to making informed financial choices. Keep an eye on both the CPI and PCE to get a comprehensive view of inflation trends and their impact on financial well-being. #Inflation #EconomicIndicators #FedPolicy

Everyone is talking about the Fed and their inflation target of 2% and wondering when interest rates will be dropped, right? So, here's the latest: While the annual rate of core inflation is currently at 3.63%, which remains well above its 2.0% target, the most closely-watched metric (core, month-over-month) actually hit its 0.3% forecast this month! Now, this number ultimately needs to be down in the 0.1 to 0.2 range in month-over-month terms if the annual number is to hit that 2.0% target. But the Fed will be willing to cut rates before we officially hit 2.0% as long as the monthly data makes it seem highly likely. When do YOU think the Fed will start cutting rates? Comment below with your prediction! #FederalReserve #InterestRates #Inflation #Money

Latest on Inflation and your pocketbook. The Federal Reserve's preferred inflation measure, the overall personal-consumption expenditures (PCE) price index, rose by 2.5% in February, matching economists' expectations. Core prices, excluding food and energy, also increased by 2.8%, in line with forecasts. Fed Chair Jerome Powell highlighted the importance of further inflation data before considering interest-rate cuts to reach the central bank's 2% goal, despite market anticipation of potential cuts. Powell emphasized the Fed's readiness to adjust rates based on economic conditions, including the possibility of more aggressive cuts if needed.

On Tuesday, US #inflation will be under the spotlight, which will likely influence #sentiment toward #fed interest rate goals. Market forecast the US annual inflation rate to soften from 3.4% to 3.0% and core inflation to decline from 3.9% to 3.8%. Sticky inflation could force the Fed to leave #interestrate higher for longer and close the door on a March Fed rate cut. At the moment, the probability of a March Fed rate is 15.0% while the chances of a May Fed rate cut are 52.3%.   AUDUSD key turning point for today: 0.645 / 0.66 #ihfx #internationalpayments #crossborderpayments #fxrisk #treasurymanagement

US Inflation Dips to 2.9%: A Potential Game-Changer for Interest Rates The latest figures are in—US inflation has cooled down to 2.9% in July, a slight but significant dip from June's 3%. This unexpected decline adds fuel to the growing speculation that the Fed might consider cutting interest rates in September. Why does this matter? - Consumer Impact: Lower inflation means the cost of living might ease up a bit, giving consumers some much-needed breathing room. - Business Implications: For businesses, a potential interest rate cut could lower borrowing costs, encouraging investment and expansion. - Economic Outlook: With core CPI still above 3%, the Fed will have to balance the need for stability with growth. The path ahead remains cautious, but the signs are pointing towards a more accommodative stance. #Economy #Inflation #InterestRates