Wall Street Journal reporter Nick Timiraos stated that the April Consumer Price Index (CPI) in the USA is not important enough to change the expectations regarding the FED's interest rate cut.
This leaves open-ended the possibility of a rate cut later this year. However, the analyst emphasized that two more CPI reports are needed to make a prediction in the form of an interest rate cut.
Despite forecasts, the Fed may not cut interest rates before September. Meanwhile, Americans continue to face significant price pressures, especially gasoline prices. Therefore, the economic landscape remains uncertain and all eyes will be on other upcoming CPI reports and the Fed's response.
New data released by the Bureau of Labor Statistics showed that prices rose 3.4 percent in April compared to the previous year. That's slightly lower than the 3.5 percent rate recorded in March, and the change comes after months of warmer-than-expected reports. Prices increased by 0.3 percent compared to the previous month.
*This is not investment advice.
