Key question before US reveals latest consumer prices: Is inflation cooling enough for the Fed?

  • 📰 wjxt4
  • ⏱ Reading Time:
  • 63 sec. here
  • 5 min. at publisher
  • 📊 Quality Score:
  • News: 36%
  • Publisher: 63%

Washington News News

Business,U.S. News

An eagerly awaited report Wednesday on consumer prices will show whether inflation is still easing, a trend the Federal Reserve will weigh in deciding when and by how much — or even whether — to cut interest rates this year.

New Insider Deals are here, and you’re going to love them!FILE - Customers drink coffee at the Blind Tiger Cafe Jan. 10, 2024, in Tampa, Fla. On Wednesday, April 10, 2024, the Labor Department issues its report on inflation at the consumer level in March. , a trend the Federal Reserve will weigh in deciding when and by how much — or even whether — to cut interest rates this year.

Early this year, Wall Street traders had projected that the Fed would cut its key rate up to six or seven times in 2024. In March, Fed officials penciled in three cuts. But persistently high inflation readings in January and February — along with signs that economic growth remains healthy — have led several Fed officials to suggest that

A rise in gas prices was a likely key source of last month's inflation. The average national price of a gallon of gas rose about 5% to $3.50. Prices for services — everything from car insurance and hotel rooms to restaurant meals and entertainment — are also believed to have risen. The costs of new and used vehicles, though, are believed to have dropped in March and are expected to hold down inflation in the months ahead. Cars and SUVs still cost much more than they did before the pandemic. But as automakers increase production and replenish dealer inventories, buyers are able to get some deals again.

The costs of groceries, having skyrocketed in 2022 and early 2023, are rising much more slowly now. Food prices were up just 1% in February from a year earlier. Egg prices, though, may jump, with avian flu having re-emerged and forced egg producers to reduce the size of their flocks.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 246. in LOANS

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Fed holds interest rates steady, postponing rate cuts amid stubborn inflationThe Federal Reserve held its key interest rate steady Wednesday for the fifth consecutive meeting.
Source: abc7newsbayarea - 🏆 529. / 51 Read more »