The waiting game continues for U.S. Federal interest rate cuts.
The U.S. Federal Reserve elected to maintain its benchmark interest rate of 5.25%-5.50% at its latest Open Market Committee (FOMC) on May 1, citing a lack of inflation progress toward the group’s long-term 2% objective.
The Fed has kept its lending rate at a 23-year high since July, following aggressively increasing rates beginning 2 years ago.
The latest U.S. Producer Price Index (issued April 11) showed that the March index for final demand was up 0.2% month-to-month — less than the respective 0.3% and 2.3% increases estimates from Dow Jones and FactSet. The Consumer Price Index increased 0.4% month-to-month and 3.5% year-over-year — exceeding expectations.
Meanwhile, U.S. labor costs accelerated during 1Q24 at their fastest rate in a year and a half.
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