US consumer prices rose more than expected in March, dampening hopes that the US Federal Reserve would bring forward an interest rate cut.
| Consumer price increases remained high last month, boosted by gas, rents, and car insurance, the government said in a report that will likely give pause to thePrices outside the volatile food and energy categories rose 0.4 per cent from February to March, the same accelerated pace as in the previous month. Measured from a year earlier, these core prices were up 3.8 per cent, unchanged from the year-over-year rise in February.
Chair Jerome Powell has stressed that the Fed’s policymakers need more confidence that inflation is steadily slowing to the Fed’s 2 per cent target. Powell’s stance has elevated the profile of the monthly inflation reports, which could determine when and by how much — or even whether — the Fed will reduce its key rate this year. Rate cuts would lead, over time, to lower borrowing costs for businesses and consumers and could also fuel a stock market rally.
Early this year, Wall Street traders had projected that the Fed would cut its key rate up to six or seven times in 2024. In March, Fed officials signalled that they envisioned three rate cuts. But elevated inflation readings for January and February — along with signs that economic growth remains healthy — led several Fed officials to suggest that fewer rate cuts may occur this year.
Such signs of economic vigor have also complicated the prospect of Fed rate cuts, which typically occur when the economy stumbles. With growth healthy, some economists have asked, why cut rates at all? A strong economy also means that the Fed’s policymakers can take their time to consider when and by how much to reduce borrowing costs for consumers and businesses.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
VFACTS March 2024: Big month leads to record quarterly result7NEWS brings you the latest local news from Australia and around the world. Stay up to date with all of the breaking sport, politics, entertainment, finance, weather and business headlines. Today's news, live updates & all the latest breaking stories from 7NEWS.
Read more »
Federal Reserve: Fed policymakers stick to three-rate-cut view in 2024, barelyNine of the Federal Reserve’s 19 policymakers see three quarter-point rate cuts this year, and nine see two or less, bolstering markets’ hopes for a pivot.
Read more »
Federal Reserve: Fed is still on track to cut interest rates in 2024: Jerome Powell“The recent data do not ... materially change the overall picture,” Federal Reserve chairman Jerome Powell said in a speech at Stanford University.
Read more »
Germany raise Euro 2024 hopes as Wirtz and Havertz shock France in LyonToni Kroos returned and Florian Wirtz scored the fastest Germany goal ever as the Euro 2024 hosts defeated France 2-0 in Lyon
Read more »
2024 Subaru Outback price and specs: $1000 price rise hits lifted wagon7NEWS brings you the latest local news from Australia and around the world. Stay up to date with all of the breaking sport, politics, entertainment, finance, weather and business headlines. Today's news, live updates & all the latest breaking stories from 7NEWS.
Read more »
Evening News Bulletin 27 March 2024The federal government fails to rush immigration powers through parliament; Inflation remains unchanged at 3.4 per cent in February; And in sport, the AFL unapologetic about its drugs policy amid allegations of serious misconduct.
Read more »