Inflation, growth may be in conflict but Fed seen restarting cuts in June
According to Safir and Howard Schneider
(Reuters) – The new data may indicate the tension between the dual inflation and employment goals of the US Federal Reserve, as prices have remained more than expected in January.
The traders keep betting on June-September this year and September rates on interest rates on interest rates on interest rates.
Inflation, slow growth hints are still stuck at top of 2% target of Fed, “says Dilma Feed … if they are equal to the blank. “Fed is now very bothering to do.”
Increase refers to slow growth and high inflation, which makes policy makers choose as much as possible between the margin, to support economic growth.
Politics developers began to point out this opportunity.
“Fed could balance the risks of inflation against the growth concerns,” Jeffrey Schmid said this week in Kanzas. “There are risks that can complicate our monetary political decisions more and more.”
Schmid spoke to Friday’s data, which show down by 2.6% in the last month last month, decreased by 2.6% in the previous month, and decreased by 2.6% in the previous month. The Core PCE measure, except for unstable food and energy prices, decreased by 2.6%, 2.9% – the Bureau of Economic Analysis of the Trade Department.
Despite the improvement, progress on Fed’s target has been slow in recent months, while the concerns have been posted on the pressure of prices as a result of import taxes.
Especially to Fed, as well as recent expectations of consumers’ inflation, something, if stable to central bankers, will contribute to fear of inflationary psychology.
On Friday, the same report also showed the expenses of unexpected expenses in January due to the sharp rise in December, as households are gathered before the telegraph tariffs of the Trump administration. The last decline of the consumer’s confidence can also point to the slowdown of growth, taking into account the consumption of households by the US economy.
English