News about Inflation

This morning’s ECI and housing price inflation figures confirm what I have suspected and feared. Inflation is not securely trending to target levels. Note that the ECI has accelerated from previous quarterly, semi-annual and annual levels. I suspect it has been understating…

🇫🇷 #FRANCE APRIL EU-HARMONIZED CPI RISES 0.6% M/M; EST. +0.5% - BBG *FRANCE APRIL EU-HARMONIZED CPI RISES 2.4% Y/Y; EST. +2.2%

🇺🇸 #Fed Flags Lack of #Inflation Progress But Signals Hikes Unlikely - Bloomberg www.bloomberg.com/news/articles/2024-05-01/fed-cites-lack-of-progress-on-inflation-holds-rates-steady?sref=ZVajCYcV pic.twitter.com/2HYADgXiSq

My guess is despite overwhelming evidence of #stagflation, #Powell will push back against this reality later today. He will likely reassure markets that the U.S. economy remains strong, #inflation is still forecast to fall to 2% over time, and that rate cuts remain appropriate.