An unexpected flare-up in US inflation last quarter is one reason officials want to see more data
Ever since the Federal Reserve signalled that the rate-rising phase of its historic fight against inflation was over, attention has been focused on when — and how quickly — the US central bank would provide relief to American borrowers.
But the top ranks at the Fed are still hesitant to declare victory just yet. Rather, they see a number of benefits in waiting a bit longer to lower their policy rate from its current 5.25-5.5 per cent level.Ireland’s demographic time bomb: too many retirees and too few babies After months of steady progress towards two per cent, first-quarter data showed an unwelcome resurgence in price pressures that cast doubt about the Fed’s grip on inflation and scuppered plans to begin cuts at the start of the summer.
While the first three months of the year are now broadly seen as an aberration, given that price pressures swiftly abated in the second quarter, it nonetheless has made officials wary about prematurely signalling a policy pivot. Reinforcing the case is a meaningful shift under way in the labour market. Once seen as an accelerant stoking inflation, US employment conditions have softened. Hiring is still strong, but Americans seeking a new position have fewer opportunities and more are applying for jobless benefits. Wage growth has also tailed off.
“Because the labour market was so resilient, they thought they had the luxury of time to be super sure ,” said Coronado. “That luxury is fading.”
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
US economy adds 206,000 jobs but unemployment creeps upFed closely monitoring employment conditions to guide decision on when to cut interest rates
Read more »
Citi was money launderers’ favourite bank, US law enforcement officials sayAlleged drug traffickers fed $36,000 into cash machines, indictment claims
Read more »
Paris Hilton testifies she was ‘force-fed medications and sexually abused’ as a teenUS socialite and media figure says she’s in her ‘Liam Neeson era’ after testifying at Washington hearing
Read more »
Prince Harry 'fed up' as he let slip details of mystery meeting to royal palAccording to a lip reader, Prince Harry discussed a 'sad' situation with Princess Eugenie's husband and spoke about Meghan Markle while waiting for King Charles' Coronation to begin
Read more »
European shares rise as Fed chair comments drive property stocksDublin-listed home builders up as real estate stocks advance
Read more »
Lando Norris fumes he's 'fed up' as McLaren boss admits two British GP errorsLando Norris led for much of the British Grand Prix but eventually finished third after a key error saw both Lewis Hamilton and Max Verstappen pass him in the last 12 laps
Read more »