English original test 2024-06-19 16:36
The Federal Reserve has projected just one interest rate cut this year. The latest round of monthly data has some economists worried it won’t come soon enough….
On Tuesday, retail sales data for May revealed that the pace of consumer spending is cooling down from last year, easing concerns about an economy running too hot in the fight against inflation. In the labor market, while last month’s job additions came in higher than expected, the unemployment rate hit 4%, its highest level since January 2022. Overall, Citi’s Economic Surprise Index, which measures the extent to which data has come in better than forecast, is hovering near its lowest level in more than a year..
Inflation data for May, meanwhile, was more promising than expected. The headline Consumer Price Index (CPI) increased at its slowest pace since July 2022. When combining that data with a reading on wholesale prices in May, economists believe the Fed’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, increased at its slowest pace of the year during May.