Home News U.S. Inflation Increases Moderately; Consumer Spending Boosts Q2 Outlook

U.S. Inflation Increases Moderately; Consumer Spending Boosts Q2 Outlook

April 29, 2024

by Lucia Mutikani
Yahoo! Finance

WASHINGTON (Reuters) – U.S. monthly inflation rose moderately in March, but stubbornly higher costs for housing and utilities suggested the Federal Reserve could keep interest rates elevated for a while.

The report from the Commerce Department on Friday, which also showed strong consumer spending last month, offered some relief to financial markets spooked by worries of stagflation after data on Thursday showed inflation surging and economic growth slowing in the first quarter.

“Markets should breathe a sigh of relief this morning,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance. “Given the elevated levels of inflation, and this is the new normal for 2024, the market is going to need to get over hopes for Fed rate cuts.”

Continue Reading at Finance.Yahoo.com…

© 2024 Inflation Café

Inflation Café (IC) content is informational only and based on information available at the time of creation. It is not an offer or solicitation, nor does it provide investment, tax, or legal advice. It may not consider your specific financial circumstances or objectives and may not be suitable for you. IC content is not a recommendation to buy or sell any securities. Readers should consult their own professional advisers and conduct their own independent investigations before making any investment decisions. IC does not guarantee the accuracy or completeness of its content or any third-party information it uses, which has not been independently verified by IC. Readers are cautioned not to rely solely on IC content for investment decisions.

IC and its owner may have financial interests in the companies discussed and may trade such securities without prior notice. IC is funded by sponsor advertisements, with payments ranging from five to ten thousand dollars monthly. IC does not charge its viewers/listeners/readers any fees. By accessing IC content, users agree that IC and its affiliates are not liable for any inaccuracies, omissions, or representations in the content provided.