June 19, 2024
News

Federal Reserve’s preferred inflation measure decreases as spending unexpectedly declines

The Federal Reserve’s preferred measure of underlying US inflation moderated in April and consumers scaled back their spending, supporting plans for a potential interest rate reduction. The core personal consumption expenditures price index, which excludes the volatile food and energy components, rose by 0.2% compared to the previous month. This was the smallest increase […]

FAQ

  1. What is the core personal consumption expenditures price index?
  2. How does the Federal Reserve use inflation data in its decision-making?

Conclusion

The data suggests that inflation in the US is stabilizing, and consumer spending is showing signs of moderation. This could pave the way for the Federal Reserve to consider lowering interest rates in the future.

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