Published: Sat, June 15, 2019
Markets | By Erika Turner

USA consumer inflation slows in May on cheap energy, used cars

USA consumer inflation slows in May on cheap energy, used cars

- Downward break of 96.50 a green light for GBP, EUR gains.

"The reason they'd come in with 50 basis points is that the emphasis would be on surprising the markets, " senior US economist Millar said.

Data on Tuesday showed that USA producer prices rose for a second straight month in May, though price pressures remained tepid.

The Labor Department said on Wednesday its consumer price index edged up 0.1% last month.

"Core price pressures were softer than expected for the fourth month in a row in May", says Katherine Judge, an economist at CIBC Capital Markets.

Consumer Price Index data on Wednesday, which is closely watched by the Federal Reserve, is the next inflation indicator.

The sharp escalation in the U.S.

The Fed's preferred inflation measure, the core personal consumption expenditures (PCE) price index, increased 1.6 per cent in the year to April after gaining 1.5 per cent in March.

Scenario 2: The central bank cuts interest rates promptly.

"Today's inflation report keeps the Fed's options open".

Trump has maintained public pressure on the Fed to cut interest rates, lamenting Monday that he didn't have China-style control over monetary policy.

Uh Oh, Sleeping with the TV on May Lead to Weight Gain
National Institute of Environmental Health Sciences (NIEHS) examined 43,722 women aged 35 to 74 years. They weren't shift workers, daytime sleepers or pregnant when the study began.

Too many economists inside and outside the Fed still don't get this.

He said that currencies including the euro are devalued against the dollar and suggested that is why tourism overseas is strong. As most of the rest of the world is effectively pegged to the dollar, a more stable dollar will help stimulate moribund growth rates in nations around the globe.

Australian dollars are seen in an illustration photo February 8, 2018. The CPI gained 0.3 per cent in April. Yearly inflation will drop to 1.9% from 2%.

The dollar was little changed at 108.480 yen.

"We are beginning to see cracks in the industrial sector and business investment". The modern norm of Fed independence is really founded on the assumption that if the Fed loses its freedom to inflict that pain, inflation will take off again. "Further escalation of the US-China trade dispute would increase the likelihood of a pre-emptive move from the Fed".

"The market has priced in a rate cut by the Fed to a significant degree", said Shinichiro Kadota, senior strategist at Barclays in Tokyo. "Given the recent language shift from Fed officials, we believe that they will use next week's June FOMC to signal an easing bias".

"An insurance cut in 2019 by the Fed will not be enough".

President Donald Trump lashed out at the Federal Reserve in a series of tweets Tuesday morning, saying that currencies including the euro are devalued against the dollar and that interest rates should be lower.

A weaker result will provide added rational for a rate cut because it is reinforcing the current policy inclination.

The experiences of the global financial crisis of 2008 and its aftermath, when the banks were bailed out to the tune of trillions of dollars, both through direct handouts and the pumping up of the financial system while the working class suffered the biggest hit to its living standards since the Great Depression, have seared deep into popular consciousness.

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