
On Friday, the Ministry of Commerce stated that inflation was barely budden in April, when the heads of definitions Donald Trump were implemented in the first part of the month, not yet appeared in the prices of consumers, according to the Ministry of Commerce on Friday.
Personal consumption expenses, the main inflation scale, increased only 0.1 % for this month, which put the annual inflation rate by 2.1 %, which is the lowest level in 205. The monthly reading was in line with the expectations of Dow Jones consensus while the annual level was 0.1 Celsius less.
With the exception of food and energy, the basic reading that tends to have a greater concentration of federal policy makers showed 0.1 % and 2.5 %, compared to all estimates 0.1 % and 2.6 %. Central Bank officials believe that Core is a better indicator of long -term directions.
Nevertheless, consumer spending slowed sharply during the month, spreading only 0.2 %, in line with consensus but slower than 0.7 % in March. The mood of the most cautious consumer was also reflected in the personal savings rate, which jumped to 4.9 %, an increase of 0.6 percentage points in March to the highest level in nearly a year.
Personal income increased by 0.8 %, with a slight increase from the previous month, but before expectations by 0.3 %.
Food prices fell 0.3 % a month, while energy and services commodities increased by 0.5 %. The costs of shelter, which was one of the most stubborn inflation components, increased by 0.4 %.
Markets A little reaction showed To the news, with the continued decrease in future securities, mixed treasury revenues.
People shop in a grocery store in Brooklyn on May 13, 2025 in New York City.
Spencer Platt Gety pictures
Trump pushed the Federal Reserve to reduce the main interest rate as inflation continued to return to the central bank’s goal by 2 %. However, politicians were hesitant to move because they were waiting for the long -term effects of the president’s commercial policy.
“The largest increases in the enlargement of basic goods may wave on the horizon as the costs of the new definitions are passed in the end,” said Oliver Allen, senior economists in the macroeconomic economy in Pantheon.
On Thursday, Trump and Federal Reserve Chair, Jerome Powell The first face meeting was held Since the president started his second term. However, the Federal Reserve Bank statement indicated that the future path of monetary policy has not been discussed and confirmed that the decisions will be liberated from political considerations.
Trump slapped 10 % duties on all imports in the United States, which is part of an effort to exceed a commercial scene in which the United States made a digital deficit of $ 140.5 billion in March. In addition to the general definitions, Trump launched a 10 % higher selective tariff.
Since then, though Trump has retired from the most severe definitions in favor of the 90 -day negotiating period with affected countries. Earlier this week, an international court DefinitionSaying that Trump has passed his authority and has not proven that national security had been threatened by commercial issues.
Then in the last batch of drama, The Court of Appeal allowed The White House effort for a temporary residence in the American Court of International Trade.
Economists worry that definitions can provoke another round of inflation, although the historical record indicates that its effect is often minimal.
In their meeting of politics earlier this month, Federal Reserve officials also expressed concern about the potential tariff, especially as concerns about the labor market rises. High prices and slow economic growth can lead to stagnation, a phenomenon that the United States has not seen since the early 1980s.
https://image.cnbcfm.com/api/v1/image/108145044-1747170035035-gettyimages-2214913494-anotherday38636995_ml9pqoyf.jpeg?v=1747170258&w=1920&h=1080
Source link