US Inflation insights: What to expect this week?

  • The release of the April Consumer Price Index (CPI) report is set to offer crucial insights into the direction of price pressures in the economy.

Traders are preparing for a series of significant economic events in the United States, notably the release of key inflation data and a highly anticipated speech by Federal Reserve Chair Jerome Powell on May 14th. 

The forthcoming April Consumer Price Index (CPI) report will offer crucial insights into the direction of price pressures in the economy. If inflationary pressures intensify, there may be expectations for the Federal Reserve to maintain interest rates at current levels for longer. 

Initial projections suggest a modest 0.3% increase in the CPI from March, slightly lower than the 0.4% rise observed in the previous month. However, recent indicators have shown a notable uptick in inflation expectations among consumers. The New York Federal Reserve’s Survey of Consumer Expectations revealed a rise in inflation expectations to 3.3%, up from 3% in March. Similarly, the University of Michigan Consumer Sentiment poll indicated an increase in inflation expectations, climbing from 3.2% to 3.5%. 

In contrast, a consensus expectation emerges from a recent Reuters poll of 108 economists, indicating an anticipation for the Federal Reserve to enact a 25 basis points cut in interest rates in September. This sentiment represents a notable increase from the April poll, where only 54 out of 100 economists shared this expectation. 

Import the BlackBull Markets Economic Calendar to iCloud, Google, or Outlook to get alerts direct to your inbox, enabling you to plan your positions in advance. 

    

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