2024-04-14 09:26:04 ET
Summary
- Inflation pressures persist, casting doubt on the Federal Reserve's plans to lower interest rates in June.
- The Consumer Price Index rose by 3.5% in March, exceeding expectations and raising concerns about the economy.
- Some economists are revising their predictions, now expecting rate cuts to start in July and September.
Fundamentals
Persistent inflation pressures persisted in March, throwing a wrench in the Federal Reserve's plans to start lowering interest rates in June and sparking doubts about whether they can do so this year without signs of the economy slowing down. According to the Labor Department's report on Wednesday, the Consumer Price Index (CPI), which measures the cost of goods and services nationwide, rose by 3.5% in March compared to a year ago. This exceeded economists' expectations and was higher than February's 3.2% increase. Core prices, which exclude volatile food and energy costs and are closely monitored by the Fed, also rose more than anticipated both monthly and yearly....
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Gold's Battle Royale: Inflation Vs. Interest Rates