#EconomicNews #InflationUpdate #FedMeeting
Summary
Wednesday is shaping up to be a pivotal day for economic news, with both the consumer price index (CPI) report and the Federal Reserve's policy meeting set to take place. The CPI report is expected to show a 0.1% increase from April, translating to an annual rise of 3.4%. Core CPI is projected to show a 0.3% monthly gain and a 3.5% annual rate. The Fed meeting will likely see no changes to interest rates, but officials will provide updates to their economic forecasts, including the "dot plot" of interest rate expectations.
Perspective
Market analysts are cautious about the potential impact of these events, with some expecting the Fed to adjust its outlook for inflation and interest rates. Optimists hope for benign outcomes, while others predict a more significant impact on the economy.
Data
- Inflation Expectations: The Fed's preferred measure of inflation, the personal consumption expenditures (PCE) price index, is expected to remain above the 2% target rate, indicating continued inflationary pressures.
- Interest Rate Projections: Economists predict the Fed will reduce its outlook for interest rate cuts, with some expecting only one or two cuts in 2024, down from the previously anticipated six.
- Economic Growth: Despite strong jobs data, the Fed is expected to reduce its outlook for gross domestic product (GDP) growth, reflecting concerns about the impact of higher interest rates on the economy.
Original Article: https://www.cnbc.com/2024/06/11/fed-meeting-and-inflation-report-both-hit-wednesday-and-the-impact-could-be-huge.html
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