Inflation decreased a little more in April with the consumer price index rate year after year falling to its slowest pace in more than four years.
The April CPI increased 0.2%, according to the Office of Labor Statistics. That is less than Economist forecasts for 0.3%, although compared to -0.1% in March. About a year after year, the CPI was higher by 2.3%, the slowest amount since February 2021. The forecasts had been during 2.4%and the March rhythm was 2.4%.
The central ICC, which eliminates food and energy costs, increased 0.2% in April, compared to 0.1% in March, but less than 0.3% were expected. The central ICC year after year increased 2.8%, in March and in line with forecasts for 2.8%.
Bitcoin (BTC) was added modestly to some profits during the night, which is quoted at $ 103,800 in the minutes after new data.
Futures of the US shares index. UU. They balancing small losses to small profits after the impression and 10 -year treasure performance dropped a basic point to 4.44%.
Still fed on hold
While IPC numbers offer welcome evidence about slower inflation, they are not likely to change the calculation with respect to federal reserve rates.
With the panic of the rate that is increasingly in the rearview mirror, market participants are quickly betting on the action of relaxing. According to CME Fedwatch, there is currently 11% possibilities for a June rate cut, below 80% a month ago.
Even July does not seem likely. There is currently 62% chances that Fed remains waiting during that month compared to only 7% probabilities a month ago.
Throughout spring and in his press conference after the meeting last week, the president of the FED, Jay Powell, indicated that the Central Bank is in no hurry to take any measure on the rates. With China’s rate agreement during the weekend and this new inflation news, this policy position is increasingly claimed.
