News about Federal Reserve

Core PCE inflation came in above the Fed's target for the 4th straight month. But it moderated from Q1 and the elevation was entirely due to imputed portfolio fees resulting from the strong stock market. Annual rates: 1 month: 3.0% 3 months: 3.5% 6 months: 3.2% 12 months: 2.8% pic.twitter.com/FHtSAVejI6

High Interest Rates Are Working, Fed's Williams Says “…sees inflation, as measured by PCE price index, falling to about 2.5% by the end of this year before moving closer to 2% next year. He sees the unemployment rate reaching about 4% at year end” www.bloomberg.com/news/articles/2024-05-30/fed-s-williams-says-ample-evidence-that-policy-is-restrictive

“Perhaps the Fed’s mantra, instead of higher for longer, should be higher indefinitely until inflation moves more convincingly in the desired direction” via Dudley ➡️ There is a case for short-term r* to be higher but this is misleading casual analysis⤵️ www.bloomberg.com/opinion/articles/2024-05-30/federal-reserve-inflation-fight-might-be-a-miscalculation

Soft evidence on inflation: the Fed’s latest Beige Book says “Prices increased at a modest pace.” In Jan. 2020 it said “Prices continued to rise at a modest pace.” Consistent with the view that the inflation bump is over.