Key takeaways
- Headline inflation dropped to 5% in March, down from 6% in February and the 9.1% high of June 2022
- Core CPI accelerated slightly to 5.6%, which was bang on target with what analysts predicted
- When considering jobs, unemployment and PCE data, the Fed’s aggressive rate increases seem to be paying off
The big economic news of today is that headline inflation has dropped to 5%, the lowest figure since 2021, which has pushed up the stock market and driven Treasury yields down. When considered against jobs, unemployment and PCE data, the overall picture looks brighter than it has in a long time.
It’s enough to make you think the Fed could pause its interest rates crusade, but core CPI accelerating slightly might be the fly in the ointment. We’re diving into the economic outlook and if an interest rate hike is on the way now the last data set before the Fed makes its decision is here.
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