Thursday, June 8, 2023
  • Login
CEO North America
  • Home
  • Business
    • Entrepreneur
    • Industry
    • Innovation
    • Management & Leadership
  • CEO Interviews
  • CEO Life
    • Art & Culture
    • Food
    • Health
    • Travel
    • Environment
  • Opinion
  • News
  • Multimedia
No Result
View All Result
  • Home
  • Business
    • Entrepreneur
    • Industry
    • Innovation
    • Management & Leadership
  • CEO Interviews
  • CEO Life
    • Art & Culture
    • Food
    • Health
    • Travel
    • Environment
  • Opinion
  • News
  • Multimedia
No Result
View All Result
CEO North America
No Result
View All Result

Cooling inflation hints at Federal Reserve pausing rate hikes

in News
Fed raises rates by half a percentage point, biggest hike in 22 years
Share on LinkedinShare on WhatsApp

The case for an interest rate hike pause in June just got stronger.

Prices rose at their slowest annual pace in two years in April, according to the latest data from the Bureau of Labor Statistics released Wednesday. The Consumer Price Index (CPI) revealed headline inflation rose 0.4% over last month and 4.9% over the prior year in April, slightly under economist expectations per Bloomberg consensus data and down from a 5.0% yearly increase in March.

The 10th-straight month of headline inflation declines has Wall Street betting Jerome Powell and the Federal Reserve will pause the most aggressive interest rate hike cycle in four decades at its next meeting in June.

“We expect the FOMC to maintain the federal funds rate at its current level for the foreseeable future and for inflation to slow further in the months ahead as supply pressures continue to ease and demand growth weakens,” Wells Fargo’s team of economists wrote on Wednesday.

Markets agree. After pricing in a roughly 78% probability of a pause prior to the CPI release, markets are now pricing a 97% chance of a rate hike pause in June, according to the CME Fed Watch tool.

Federal Reserve Chair Jerome Powell signaled what some Wall Street economists considered a “hawkish pause” during his press conference on May 3. While Powell didn’t close the door on future rate hikes, he pointed to key phrasing the Fed removed from its statement about anticipating more rate hikes.

The Fed hiked rates by 0.25% at the May meeting, marking the 10th consecutive hike in the cycle. The central bank’s new benchmark policy rate, the fed funds rate, is now in a range of 5%-5.25%, the highest since September 2007. But as rising rates have tightened credit conditions, investors are now waiting for the moment when the Fed will pause its path and let the impact of higher rates take hold.

In a note titled “supportive of a pause,” Bank of America’s team of economists point to several underlying factors inside the report that are constructive for the Fed’s fight against inflation.

“This is an encouraging print for the Fed,” BofA wrote. “The broad-based deceleration, and concerns about used cars (were) offset by the fact that wholesale prices are falling again. This report should keep the Fed comfortable with a hold in June. However, note that we have one more jobs report and one more inflation print before the June meeting.”

Stocks closed modestly higher on Wednesday, as a confluence of other factors, including regional banking turmoil and a looming debt ceiling X-date dominate investor sentiment.

To be sure, core inflation, which strips out food and energy prices, remained sticky last month. On a core basis, prices in April climbed 0.4% over the prior month and 5.5% over last year.

Still, the print was a win for the bulls, according to Fundstrat head of research Tom Lee.

“Markets have become a “game of inches” (from Any Given Sunday, 1999) and each incoming data point barely moves consensus viewpoints, “Lee wrote on Wednesday, referring to a Al Pacino’s famous movie line about the significance of small details.

“Today’s report is not a tie breaker. There are signs of progress on inflation, but then again, there is the same volatility in components that would argue inflation is lingering. But overall, we see the ground gained by those bullish.”

By Josh Schafer / Yahoo Finance

Tags: Federal ReserveinflationUnited States

Related Posts

Videogame retailer gamestop fires ceo
News

Videogame retailer GameStop fires CEO

Cnn’s ceo chris licht steps down
News

CNN’s CEO Chris Licht steps down

Former coinbase manager, brother settle sec insider-trading charges
News

Coinbase threatens to take SEC fight to US Supreme Court

Reddit to cut workforce by 5%
News

Reddit to cut workforce by 5%

- sequoia capital to separate us, china operations
News

Sequoia Capital to separate US, China operations

Apple curtails specs of self-driving car, delays debut
News

Apple shares hit all-time high amid new product launches

Spotify to cut 6% of workforce
News

Spotify to lay off 200 staff

3m to cut 2,500 jobs
Environment

3M settles $10 billion water pollution claims with US cities

How ergonomics impacts health and safety in the workplace
News

US companies’ hiring surpasses all forecasts, but wage growth slows

Elon musk has an active stake in twitter; started buying stock in january
News

Twitter now worth one-third of Elon Musk’s purchase price

No Result
View All Result

Recent Posts

  • Videogame retailer GameStop fires CEO
  • Apple should buy Disney to harness potential of Vision Pro
  • How wildfire smoke affects human health
  • CNN’s CEO Chris Licht steps down
  • US trade gap widens to largest in six months as exports decline

Recent Comments

    Archives

    Categories

    • Art & Culture
    • Business
    • CEO Interviews
    • CEO Life
    • Editor´s Choice
    • Entrepreneur
    • Environment
    • Food
    • Health
    • Highlights
    • Industry
    • Innovation
    • Issues
    • Management & Leadership
    • Multimedia
    • News
    • Opinion
    • PrimeZone
    • Printed Version
    • Travel
    • Uncategorized

    Meta

    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org

    • CONTACT
    • GENERAL ENQUIRIES
    • ADVERTISING
    • MEDIA KIT
    • DIRECTORY
    • TERMS AND CONDITIONS

    Editorials – stuart.james@ceo-na.com

    Advertising – media@ceo-na.com

    NEW YORK

    110 Wall St.,
    3rd Floor
    New York, NY.
    10005
    USA
    +1 212 432 5800

     

    MEXICO CITY

    Paseo de la Reforma 296,
    Floor 38
    Mexico City
    06600
    MEXICO

    • CONTACT
    • GENERAL ENQUIRIES
    • ADVERTISING
    • MEDIA KIT
    • DIRECTORY
    • TERMS AND CONDITIONS

    Editorials –
    stuart.james@ceo-na.com

    Editor-In-Chief –

    caroline.sposto@ceo-na.com

    Editorials – editorials@ceo-na.com

    Advertising –
    media@ceo-na.com

    NEW YORK

    110 Wall St.,
    3rd Floor
    New York, NY.
    10005
    USA
    +1 212 432 5800

    MEXICO CITY

    Paseo de la Reforma 296,
    Floor 38
    Mexico City
    06600
    MEXICO

    CEO North America © 2022 - Sitemap

    No Result
    View All Result
    • Home
    • Business
      • Entrepreneur
      • Industry
      • Innovation
      • Management & Leadership
    • CEO Interviews
    • CEO Life
      • Art & Culture
      • Food
      • Health
      • Travel
      • Environment
    • Opinion
    • News
    • Multimedia

    © 2023 JNews - Premium WordPress news & magazine theme by Jegtheme.

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In

    Warning: array_sum() expects parameter 1 to be array, null given in /home/ceonacom/public_html/wp-content/plugins/jnews-social-share/class.jnews-social-background-process.php on line 111