The data on personal consumption expenditures, which is closely followed by the FED while making its decision to increase interest rates and which is accepted as a leading inflation indicator, were announced.
Accordingly, personal consumption expenditures were announced as 0.1% in March, below the expectations of 0.3%.
All the data disclosed are as follows:
- Core Personal Consumption Expenses Price Index (YoY) Announced 4.6% – Expected 4.5% – Previous 4.7%
- Core Personal Consumption Expenses Price List (MoM) Announced 0.3% – Expected 0.3% – Previous 0.3%
- Personal Consumption Expenditures Price Index (MoM) Announced 0.1% – Expected 0.3% – Previous 0.3%
- Personal Consumption Expenditures Price Index (YoY) Announced 4.2% – Previous 5.1%
Here is the first reaction of Bitcoin and Dollar Index after the data
FED Interest Rate Decision and Decision Text Will Determine the Direction of the Markets
The next US inflation data will be released on May 10.
Before this data, the FED interest rate decision will be announced on May 3, 2023.
While making the interest rate decision on May 3, the FED will take into account the inflation data announced on April 12, which came under expectations, data on personal consumption expenditures announced today and data on the labor market.
The turbulence experienced by the First Republic Bank in the USA signals that the banking crisis has not passed yet and that the FED should slow down in the rate of increase in interest rates.
Expectations are for the interest rate hike cycle to be completed with the 25 basis point rate hike decision on May 3 and the interest rates to be kept constant at these levels for a while.
